Avance Capital, LLC has launched the Avance Real Estate Investment Fund 2, a highly anticipated follow-up to its successful Fund 1. With a track record of success across $30 million of investment offerings, Avance Capital has carved out a niche in graduate student housing and emerged as a leader specializing in student housing at private universities in the northeast.
Since 2015, Avance Capital has been committed to providing its Limited Partner investors with access to an exclusive asset class that is hedged against inflation and that is recession resistant. Avance generates impressive risk adjusted value-add returns to its investors through its unique model of repositioning properties and property management strategies.
The appeal of investing in student housing comes from its resilience throughout economic conditions, making it one of the most recession resistant asset classes. Studies show that student housing performs well in both prosperous and challenging economic times. Over the past decade, graduate student enrollment has increased nearly every year. Notably, during economic downturns and periods of lower employment, people go back to graduate school to bolster their employability and learn new skills. The pandemic accelerated this trend, resulting in staggering growth of 1.7 million graduate students—nearly 3x the total growth of the previous ten years.
The economic disruption from the COVID-19 pandemic tested the Avance investment model and proved its resilience. As universities closed campuses and classes shifted to online learning, Avance properties maintained near 100% occupancy and near 100% rent collection. Even residents who moved back with their family continued to pay rent. Through technology solutions and property management programs, we have achieved outstanding results using an automatic rent payment system and by requiring parental guarantees. Notably, we have not yet had to evict a tenant due to our strong tenant relationships and management expertise. The community of residents we have built continues to grow and flourish. We are making a positive impact on our residents’ housing experience resulting in all 5-star reviews online. Avance Capital is a leader in the niche of graduate student housing within the multifamily investment asset class.
Prominent institutions like Columbia University, Brown University, and Brandeis University provide limited or no on-campus housing for their graduate students. Avance Capital, through its management and leasing company, GradBNB, provides the same services to graduate students that the universities provide to their on-campus students, including roommate matching and orientation programs all aimed to achieve the goals of creating community and providing the best off-campus housing experience for its residents. As university enrollments continue to grow, the demand for high-quality housing increases, particularly for graduate students. In 2021 and 2022, rental rates climbed significantly. Demand continues to grow particularly for co-living housing options as waves of students return to campus. This year, the latest wave of renters to come back are the international students who tend to be from wealthy families and proportionally demand even more high quality off campus housing. Avance owns and operates a growing portfolio of more than 200 student bedrooms, and anticipates another year of rent growth and high occupancy.
Fund 2 offers qualified accredited investors the opportunity to participate in Avance Capital's success. The added benefit for early investors is the Big Bonus investor program, which offers 10% bonus shares on top of the initial equity investment. The Big Bonus is only available for a limited time until 7/26/23. For more information about Fund 2, please contact me at David@AvanceCapitalLLC.com and visit AvanceCapitalLLC.com/fund2
Founder & CEO
Avance Capital, LLC