In 2012, a 528-bed student apartment community serving Indiana University was owned by a partnership in the process of unwinding. The community had experienced vacancy concerns, substantial deferred maintenance and a declining reputation in the market. Scion acquired and then successfully renovated and repositioned the property.
Scion had the opportunity in September 2012 to acquire the community, then known as Bradford Place, if the purchase could close before year-end. Scion assembled equity from its investment group and a private-equity joint venture partner, placed new mortgage financing and acquired the property just 10 weeks after signing the purchase agreement.
Scion then executed a physical rehabilitation and brand repositioning program, including replacing apartment flooring, adding furniture, renovating the clubhouse and upgrading the pool area. Apartments also received new roofs, new lighting and appliance upgrades. To better link the property to Indiana University, Scion replaced a single shuttle van with two private step-up shuttle buses.
With Scion’s rigorous property operations standards in place, the community was re-branded in 2013 as Reserve on Third, with an intensive but cost-efficient marketing campaign. Scion successfully leased the community to 100% occupancy, leading the local market, with rental rate increases of nearly 20% in the two years since acquisition.