Student housing has come a long way since the days of frat houses and bad cafeteria food.
On a tree-lined Greenwich Village street in Manhattan, The Alabama is beautiful from the outside yet betrays what lies beyond the front door. In fact, our building holds the unique distinction of being the first-in-market luxury rental property specifically geared towards students.
The building, which later this month will welcome its second crop of residents for the 2018-2019 school year, offers all the amenities one would expect in a Manhattan luxury rental building, including a gym, laundry, private study rooms and conference rooms as well as fully-outfitted kitchens and bathrooms in each of the 92 apartments.
Student housing is not as plentiful in New York City as you might think: after traditional dormitory and residence hall options are exhausted, students are forced to apartment hunt just like anyone. And while living in a Manhattan brownstone might seem romantic, carrying furniture and personal possessions up a five-story staircase and dealing with eccentric neighbors is not.
We saw this as an opportunity: to provide a turnkey alternative to non-traditional student housing, to create a communal atmosphere for young people built on their interests and assure their parents - most of whom are paying some or all of the bill - of their children’s safety and happiness. That cable TV and Wi-Fi are included in the rent makes it an attractive option.
Not that it’s been completely smooth sailing.
After a $13 million renovation, we encountered numerous challenges associated with renovating a 100+ year old building. Elevators became in need of frequent attention and we experienced problems with the electrical wiring that only were discovered once students were moved in and putting the building through its paces. And, like any Manhattan building, we encountered small, four-legged squatters who wanted to move in.
To address these issues, we invested an additional $2 million into the property, and turned the building in the right direction. Earlier this year, The Alabama was recognized nationally at the 10th Annual Interface Student Housing Conference with the “Best Renovation of Existing Project” award for its work.
There’s no doubt that this model has been welcomed in New York - the most competitive and expensive real estate market in the country - and we look forward to similar projects for students all around the city. Having these lessons learned will make the next project that much more successful.
Adam Ross is a member of the Collegium and TriArch investment team behind The Alabama, New York, N.Y.
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