Clemson Real Estate Syndicate
Clemson Student Housing Portfolio
Executive Summary
Student Housing Portfolio
Clemson & Central, SC
17 units (7 houses + 10 condos)
$508,800
$1.625M (25% down)
6.1% | 75% LTV
10 years
Why Clemson? Market Analysis
Strong fundamentals driving long-term student housing demand
University planning 2% annual growth through 2035
Strategic initiative to deliver #1 student experience
Revenue doubled since 2013, upgraded bond rating expected 2025
Enrollment Growth Trajectory
- 2% annual enrollment increase targeted through 2035
- Current push to exceed 36,000 students
- Part of Clemson Elevate - a 12-year strategic growth plan
- University investing in campus development and research expansion
University Financial Strength
- "Clemson has never been stronger" - President Jim Clements (Feb 2025)
- Revenue doubled since 2013, 7.2% annualized growth rate
- 26% revenue surge since 2022
- Upgraded bond rating expected Spring 2025
- 45% lower spending per graduate vs. top 25 public universities
Off-Campus Housing Demand
- Sophomores not required to live on campus - creates consistent off-campus demand
- University maintaining current on-campus residence requirements
- Focus on smart facility use, not massive on-campus housing expansion
- Potential summer semester expansion could increase year-round occupancy
Investment Thesis - Why This Deal Works
Clemson's strategic enrollment growth, combined with limited on-campus housing expansion and strong university fundamentals, creates ideal conditions for off-campus student housing investments. The 12-year Clemson Elevate plan ensures sustained demand through our 10-year hold period.
Updated financing at 6.1% fixed over 30 years enhances cash flow stability and refinancing flexibility. Combined with verified 100% occupancy and owner-validated operating expenses, the portfolio achieves strong, consistent CoC returns with substantial mid-term refinance upside.
Source: The Tiger CU, "University to focus on revenue opportunities, efficient spending and strategic investments" (February 2025)
Financial Assumptions
Conservative modeling based on current market conditions and owner-verified data
Modeled using a 6.1% fixed rate loan on a 30-year amortization schedule, with 75% LTV.
Base Case assumes 90% occupancy, 3.5% rent growth, 9% PM fee (Y1-3, removed Y4+), 5% OpEx + 5% reserves (22% total load Y1-3, 13% Y4+).
Bull Case includes 5-year interest-only, 100% occupancy, 4% rent growth, 9% PM fee (Y1-3), 19% load Y1-3, 10% Y4+.
✓ Note: Operating costs have been validated by the current property owner, averaging just 5% annually.
✓ Property Taxes: $50K annual property tax expense is already included and netted into all cash flow projections.
Portfolio Properties
All units fully leased with 100% verified occupancy history
| Property | Units | Monthly Rent | Annual Rent | Notes |
|---|---|---|---|---|
| Fern Circle Clemson, SC |
3 Houses (6BR avg) |
$13,500 | $162,000 | • 114: Built 2018 (Roof 2018) • 110 & 112: Built 2021 (Roofs 2021) • Near city limits |
| Laverne Court Central, SC |
4 Houses (3×6BR + 1×4BR) |
$15,900 | $190,800 | • Built 2014 (Occupied 2015) • All roofs 2015 • Oversized garages |
| Old Central Rd Clemson, SC |
10 Condos (2BR each) |
$13,000 | $156,000 | • Built 1985 • Roof replaced 2015 • Undermarket rents with upside potential |
| Total Portfolio 17 Units | Tenants pay utilities |
$42,400/mo | $508,800/yr | Purchase Price: $6.5M | |
Scenario Analysis
Bull Case - Optimistic but Grounded
18.2% IRR | 4.6× Multiple | 9.8% Avg. CoCKey Assumptions
- 100% occupancy (owner-verified historical)
- 5-year interest-only period @ 6.1%
- 9% PM fee (Y1-3), removed Y4+
- 19% expense load (Y1-3), 10% (Y4-10)
- 5% OpEx + 5% reserves baseline
- NOI: $412K (Y1), $458K (Y4+)
- Y1 Cash-on-Cash: 7.0%
- $50K property tax included in all projections
10-Year Performance
| Interest-Only Period | 5 years |
| Annual Debt Service | $298K (IO) |
| Y1 Net Cash Flow | $114K |
| Y1 CoC Return | 7.0% |
| Year 10 Exit | |
| Investor Equity | ~$9.1M |
| Equity Multiple | 4.6× |
| LP IRR (10 yr) | 18.2% |
Base Case - Balanced and Realistic
13.4% IRR | 3.9× Multiple | 6.3% Avg. CoCKey Assumptions
- 90% occupancy
- Amortizing loan @ 6.1%, 30 years
- 9% PM fee (Y1-3), removed Y4+
- 22% expense load (Y1-3), 13% (Y4-10)
- 5% OpEx + 5% reserves baseline
- NOI: $397K (Y1), $443K (Y4+)
- Y1 Cash-on-Cash: 2.6%
- $50K property tax included in all projections
10-Year Performance
| Loan Structure | Amortizing |
| Annual Debt Service | $355K |
| Y1 Net Cash Flow | $42K |
| Y1 CoC Return | 2.6% |
| Year 10 Exit | |
| Investor Equity | ~$6.6M |
| Equity Multiple | 3.9× |
| LP IRR (10 yr) | 13.4% |
Bear Case - Conservative Stress Test
6.0% IRR | 2.3× Multiple | 3.0% Avg. CoCKey Assumptions
- 75% occupancy (significant vacancy stress)
- Amortizing loan @ 6.1%, 30 years
- 9% PM fee (Y1-3), removed Y4+
- 26% expense load (Y1-3), 17% (Y4-10)
- Higher OpEx due to vacancy turnover
- NOI: $376K (Y1), $422K (Y4+)
- Y1 Cash-on-Cash: 1.3%
- $50K property tax included in all projections
10-Year Performance
| Loan Structure | Amortizing |
| Annual Debt Service | $355K |
| Y1 Net Cash Flow | $21K |
| Y1 CoC Return | 1.3% |
| Year 10 Exit | |
| Investor Equity | ~$3.3M |
| Equity Multiple | 2.3× |
| LP IRR (10 yr) | 6.0% |
Investment Structure
Entity Structure
LLC with pass-through taxation. K-1 distributions with depreciation benefits (~$189K/year generating paper tax losses). Total equity required: $1.625M (25% down). Loan: $4.875M at 6.1% fixed for 30 years. Bull Case includes 5-year interest-only period before amortization begins, optimizing early cash flow and DSCR.
Distribution Waterfall
100% of cash flow to investors until a 6% preferred return (CoC) is achieved each year, then 80% LP / 20% GP split thereafter. Refinance proceeds distributed tax-free when available, prioritizing LPs until the annual 6% hurdle is met.
Operating Expenses
9% PM fee (Y1-3), removed Y4+ once stabilized. 5% OpEx + 5% reserves = 10% baseline. Total expense load: 19-26% (Y1-3) depending on occupancy, 10-17% (Y4+). All projections include $50K annual property tax. Reserve fund covers capex, maintenance, and contingencies.
Exit Strategy
10-year hold period with exit at market value. Returns shown are without refinancing to demonstrate conservative baseline performance. Optional refinancing could be pursued in favorable rate environments to return capital tax-free to investors. Bull Case 5-year IO period maximizes early distributions and preserves refinance flexibility.
GP / LP Fee Structure & Alignment
Transparent fees aligned with investor success
| Fee Type | Amount | Description |
|---|---|---|
| Acquisition Fee | 1% of purchase | Covers sourcing, due diligence, and closing management |
| Asset Management Fee | 1.5% of collected rent | Paid quarterly; aligns GP with operational performance |
| Disposition Fee | 1% of sale price | Incentivizes optimized exit value |
| Preferred Return | 6% annually | Paid to LPs before GP profit share |
| Profit Split | 80% LP / 20% GP | After 6% preferred return is met |
Tax Benefits & Depreciation
Depreciation Schedule
27.5-year straight-line on ~80% of purchase price. Annual depreciation: ~$189K/year offsetting taxable income.
Cost Segregation (Optional)
Accelerated bonus depreciation can front-load up to 30-40% of total deductions for immediate tax benefits.
After-Tax Impact
Investors may realize effective after-tax returns 1.5-2% higher than stated IRR through depreciation benefits.
K-1 Distributions
Pass-through taxation via LLC structure. Depreciation generates tax losses while maintaining positive cash flow.
Debt Structure & Loan Terms
6.1% fixed rate, 30-year amortization, 75% LTV, and a 5-year interest-only period (Bull Case)
| Metric | Base Case | Bull Case |
|---|---|---|
| Interest Rate | 6.1% fixed | 6.1% fixed |
| Loan Term | 30 years | 30 years |
| Interest-Only Period | None | 5 years |
| Occupancy | 90% | 100% |
| PM Fee (Y1-3) | 9% | 9% |
| Avg. Annual CoC | 6.3% | 9.8% |
| IRR (10-Year) | 13.4% | 18.2% |
| Equity Multiple | 3.9× | 4.6× |
| Y1 CoC | 2.6% | 7.0% |
| Y1 NOI | $397K | $412K |
Note: Longer amortization reduces annual debt service by ~6%, improving DSCR and early cash yields.
Use of Investor Funds ($1.625M Equity)
| Use | Amount | % of Total Equity |
|---|---|---|
| Property Acquisition | $1,520,000 | 93.5% |
| Closing Costs & Due Diligence | $55,000 | 3.4% |
| Working Capital & Initial Reserve | $50,000 | 3.1% |
| Total Equity | $1,625,000 | 100% |
10-Year Performance Summary
Based on owner-verified operational data and refined scenarios
| Metric | Bull Case | Base Case | Bear Case |
|---|---|---|---|
| Investor Equity (Y10) | ~$9.1M | ~$6.6M | ~$3.3M |
| Equity Multiple | 4.6× | 3.9× | 2.3× |
| LP IRR | 18.2% | 13.4% | 6.0% |
| Avg. Annual CoC | 9.8% | 6.3% | 3.0% |
| Y1 CoC | 7.0% | 2.6% | 1.3% |
| Y1 NOI | $412K | $397K | $376K |
| Note | Returns shown without refinancing. Optional refinancing could enhance returns further. | ||
Interested in Long-Term Compounding?
See how disciplined reinvestment turns a $1.75M investment into $10M+ over 25 years
View 25-Year Compounding Case Study →Risk Disclosure
Important: All investments carry risk. This investment is subject to various risks including:
- Market fluctuations in Clemson, SC real estate market
- Changes in student enrollment at Clemson University
- Operating cost increases (maintenance, property taxes, insurance)
- Interest rate changes affecting refinancing opportunities
- Vacancy rates and tenant turnover
- Regulatory and zoning changes
Disclaimer: These projections are estimates based on 6.1% fixed rate financing with 30-year amortization. All projections are estimates and subject to market conditions. Actual results may vary. Consult your financial, legal, and tax advisors before investing. Review the full offering memorandum for complete details.