The Preiss Company Adds 1,692-Bed Student Housing Management Contract
Monday February 12, 2018
To Oversee Major Renovation at Property Serving East Carolina University, Pitt Community College
GREENVILLE, N.C. & RALEIGH, N.C. & CHARLOTTE, N.C.--(BUSINESS WIRE)--Officials of The Preiss Company (TPCO), one of the nation’s largest, privately-held, student housing owner-operators, today announced that it has signed a management contract to oversee operations for a 1,692-bed student housing complex, serving Eastern Carolina University and Pitt Community College in Greenville, N.C. Previously named Captain Quarters, the complex has been rebranded to Paramount 3800 and will undergo a multi-million renovation, which will be overseen by TPCO. The real estate asset, the largest student housing property in the market, recently was acquired by a joint venture between FM Capital, in conjunction with Gottlieb Family Partners, and AMAC Holdings.
“This is our first contract with these experienced joint venture partners, and we look forward to the opportunity to expand that relationship in the future,” said Donna Preiss, founder and CEO, The Preiss Company. “We have nearly two decades of experience operating 1,000-plus-bed properties in multiple markets and have an extensive history in Greenville representing three other properties there, either open or under construction. It’s a great market with a solid growth outlook. Initial response to the makeover/renovation plans by the property’s current residents, as well as those seeking housing for next fall, has been quite favorable. This is a classic turn-around situation, and we anticipate that the renovation and extensive, proprietary operating programs will create high student resident satisfaction and improved financial results.
“Management contracts comprise about 40 percent of our portfolio and are an important part of our growth strategy. We have an extensive infrastructure in place to accommodate continued growth in both third-party management and joint-venture ownership,” Preiss noted. “Because of the highly fragmented industry, we believe the majority of student housing is under-managed. Our experience, serving approximately 50 markets, gives us nationwide operating expertise for all types of properties, regardless of size. However, we remain selective in our third-party contract approach, seeking to partner with savvy investors who demand market leading performance to optimize returns on their investments.”
“The property originally was built in two adjoining complexes in 2004 and 2005. When acquired, one section was operating well below average market leasing and rental rate levels and the other was unoccupied,” said Preiss’ Chief Operating Officer Adam Byrley. “We already are underway on a multi-million-dollar transformation which immediately will reposition the property into the market’s top tier. We will undertake the upgrade in phases to minimize student disruption with a goal of completion by year-end. The enhancements, when combined with our proprietary operating programs, will allow the Paramount 3800 to quickly become a market leader.”
Located on 50-plus acres at 3800 Bostic Drive and encompassing 34 buildings, the massive complex features two clubhouses, computer lab, fitness center, theater room, private and group study rooms, three resort-style swimming pools, sand volleyball courts and a full-court gymnasium.
The renovation will massively overhaul the complex’s exterior and interior to give the property a like-new appearance. The exterior will undergo significant improvements, especially the extensive common areas. Units will be upgraded featuring the latest design trends and state-of-the-art, managed wireless Internet access.
About The Preiss Company
Celebrating its 30th year, Raleigh-based, The Preiss Company specializes in the development, acquisition and management of off-campus student housing. The company is ranked in the nation’s top 10 largest, privately-held, student housing owner-operator. For more information, visit www.tpco.com.