Developers make targeted investments to win student apartment wars

From shirts to koozies, water bottles to key chains and social media to group meetings, student-housing developers are pulling out all the stops to win over the Springfield college crowd.

Getting heads in beds is the name of the game, and the investments are steep and targeted.

“When we enter a market, our focus and approach is to be really integrated within that community,” said Zach Borger, vice president of sales and marketing for Austin, Texas-based developer Aspen Heights, which is building a $38 million complex on East St. Louis Street. “This project is a larger project for this market … but regardless of the market we go into, we always try to take a very unique, very tailored approach.”

The Missouri State University campus and its over 20,000 students is a breeding ground for renters, and the inroads are valuable connections.

Aspen Heights has committed over $100,000 in promotional efforts to fill its 564-bed Springfield property by the 2016-17 school year. The company pushed for a visible presence around athletic events and Bearfest Village, where fellow students have distributed shirts and koozies and other promotional items, such as pens, cups or lip balm.

On the same turf, students receive similar goodies from Bryan Properties.

“We’re a big sponsor of Bearfest Village – the tailgate party that goes on,” said Craig Edwards, general manager for the company building out the $30 million Bear Village along the southwestern edge of campus.

With a $50,000 marketing budget mostly dedicated to MSU activities, Bryan Properties spends a healthy amount to advertise in The Standard student newspaper and is involved in other sporting events. For example, the company sponsors a Student of the Game, which identifies someone in the JQH Arena student section on the video screen to receive a gift certificate to the student bookstore.

“They can come see us, and get a $50 gift card,” Edwards said. “It’s kind of fun, and it gets our name out there.”

Though marketing on campus might be more concentrated, developers have pinpointed the college crowd for years.

According to Springfield Business Journal research, 17 student-housing developments have been built or are under construction around center city since the $8.5 million Eko Park kicked off the boom in 2009. The estimated value of those projects is over $140 million, and developers are working to protect their investments.

“We’re just trying to meet them where they are,” said Tim Roth, a commercial real estate agent, who partnered with Denver-based Beacon Student Housing to develop Beacon Suites, Beacon Park and Beacon Commons near MSU. “With everybody – us, Bear Village, Aspen – it’s a giveaway. It’s, ‘Hey, come look at our property and we’ll give you a free T-shirt.’ I think everybody is doing a lot of the same things.”

The segment is congested, and as a result marketers say the message must be clear and meaningful.

Rick Shortt, director of sales and marketing at Affiniti Management Services Inc., said the firm markets for several student-housing properties, including Deep Elm, The Jefferson, the Beacon apartments and The Q’Ube, as well as loft properties such as Blue Block Lofts.

“Everybody likes free stuff, but at some point, it becomes too much,” Shortt said. “The best approach is one on one and getting to know them.”

Shortt might host a fraternity meeting with some pizza, talk a bit about apartment options, and then just sit back.

“Or if somebody wants a speaker, we’ll come out. Yeah, we’ll talk about our properties, but we’ll also talk about what it was like being a student, or what our job is like,” he said. “If we meet with a group of business majors, they’ll be interested in what we do for a living.”

Listening to the students is a key factor in earning their monthly rent.

“One of the most important things we do on the front end is listen to them and get feedback from them and understand what makes this market tick in its own way,” said Borger of Aspen Heights, which opened an office at 307 S. National Ave. for two full-time staff members and a handful of part-time students to orchestrate community outreach efforts. “Then we’ll build out more of our strategy from there.”

The construction and management company is no stranger to college towns. Aspen Heights has developed over 12,000 beds for university populations at Mizzou, Oklahoma State, Clemson and Auburn.

Through Aspen Cheer, Aspen Heights is giving away over $7,000 across 18 cities to individuals nominated for special recognition. Aspen Heights will tweet a custom video at the person, and people can vote on the best-shared stories on Instagram.

Edwards said Bryan Properties might have a foothold because it’s catered to students well before the current per-bedroom leasing model took hold in center city. Over the past three years, he said it’s been common to place students on waiting lists for its properties, including The Carlyle Apartments on West Battlefield and Hampton Place on East Madison Street.

“It hasn’t been that hard for us in this new market to claim our space because they already knew us,” Edwards said. “We don’t have to do as much advertising as Aspen does because we’ve been here longer, we’re established and we’re full.”