College Station, Texas - On Thursday October 15, 2009, Mr. Mark Lindley, Senior Vice President of the Construction Division at Asset Plus Corporation, gave Texas A&M University (Aggie) MSLD candidates an outstanding insight into what it takes to put together a successful student housing development. Lindley provided the students insight into: market analysis and development opportunity identification; site selection and acquisition; development conceptualization; design; entitlement; construction management; development financing; project marketing; leasing and property management at Asset Plus Corporation’s latest mixed-use student housing project in College Station, Texas.
 
Final year MSLD candidate Christopher McGhee of Houston, Texas, summarized the lessons learned from the project briefing and site visit to The Lofts at Wolf Pen Creek:

• Identify and test the development opportunity: a strong return could be generated from student housing near Texas A&M University, despite the current recessed economic conditions, if it was well conceptualized and delivered.
• Select and acquire a suitable site: after a comprehensive review of available sites the Wolf Pen Creek site was selected on price, proximity to the campus and community facilities; and, its ability to yield the mixed-use development concept.
• Know your target demographic: development conceptualization was based on an extensive analysis and detailed understanding of what students wanted, but lacked, in the then current student housing offer. Time had to be invested in talking to students to ensure the right match between the development concept and the needs of the target demographic that it sought to satisfy.
• Focus on development approval and entitlement: the development approval and entitlement process had to be managed in a sensitive and cost effective manner to ensure project delivery on-time and on-cost. The needs and desires of the approval authorities had to be properly understood, appreciated, and respected. Negotiations ensured that each party won from project approval.
• Manage down construction cost: the cost to deliver the project had to be managed down through design and construction so as to maximize development profit. Particular attention was paid to construction method, materials, and finishes to ensure building performance, appearance, and on-time delivery.
• Market your product through design: the inclusion of amenities like the swimming pools, shops, games rooms, gym and fitness center, computer rooms, and movie theatre were a powerful marketing tool to demonstrate to students that their desires and preferences were delivered in The Lofts at Wolf Pen Creek.
• Keep your finance structure cost effective: a simple debt/equity ratio that included a strong equity partner (pension fund) and no mezzanine debt.
• Manage the asset to peak performance: the physical (building) asset can only reach its full income producing potential and value with a management team that both knows and balances user satisfaction with peak financial performance. 

Mark Lindley’s closing piece of advice to the MSLD candidates: “Don’t be greedy. Be patient but focused. Take little but deliberate bites of the apple and you’ll get to the core.” The project was delivered on budget, within a tight 12 month construction timetable, and opened on-time for the fall 2009 semester—97% leased.
 
ABOUT THE TEXAS A&M REAL ESTATE DEVELOPMENT ASSOCIATION
The Real Estate Development Association (REDA) provides students in the Master of Science in Land Development (MSLD) program at Texas A&M University with enhanced leadership training, access to, and understanding of the real estate development industry, and professional exposure and networking. Texas A&M University's MSLD program has produced many of today's Real Estate Development Industry leaders - a proud tradition.