SAM National Properties, LLC

Chapter House Investment Overview

Student housing can be a profitable investment if structured prudently and with today’s college student in mind.  Greek housing is in high demand due to a shortage of viable fraternity houses, as well as the steady growth (4.8% annual growth) of Greek communities throughout collegiate America over the past ten years.  Chapters and their members benefit from having their own “home”, a center of operation, and congregating space to conduct official activities, parties, or just socialize.

 

In 2015, Sigma Alpha Mu established two new entities for the purpose of meeting the increased need for housing for our chapter members throughout the United States and Canada.  The mission of SAM National Properties, LLC is to develop and manage housing for Sigma Alpha Mu chapters. We also take advantage of other prime investment opportunities. SAM National Properties is the umbrella company for each investment entity, acting as Managing Member.  Each property is owned by its own separate legal entity and investment group. Day-to-day property management is handled by SAM Property Management. LLC, a SAM NP subsidiary.

 

With a prudent financial approach, coupled with conservative managerial and deal-making tactics, we can provide an attractive return on investment for our equity partners.

Our Activites

  • Recruit investors
  • Find institutional financial sources for investment deals.
  • Handle all administrative and financial activities, including tax filings and reporting.
  • Ensure compliance of entities with local, state, and federal laws and regulations regarding housing.
  • Hire and supervise local vendors.
  • Provide supervision and oversight of maintenance activities, as well as construction and renovation projects, where appropriate.
  • Provide supervision and oversight of leasing/residency processes.

Investment Considerations

  • Deal structure for each investment is determined on a case by case basis.
  • The equity portion of each deal is usually between 20-35%.  We obtain debt financing for the balance of the investment. Investors will receive a “preferred coupon” payment each year.
  • The cost of local management is factored into the rental charges. Each investment property will have a significant renovation capex and vacancy reserve so that we minimize the possibility of a cash call or refinancing.
  • Professional property management is in place.  Investors are passive so that they don’t have to worry about maintenance phone calls or chapter-related problems.
  • The National Properties Board of Directors controls the administrative and operating decisions of the investment entity.
  • SAM Property Management enters into a lease agreement with each chapter, which will, in turn, be responsible for filling the chapter house and for collecting rents, fees, etc.  The chapter enters into individual Residency Agreements with members and/or their parents (as guarantors).

Current Ownership and Management Accounts

  • Arizona – LLC Owned / Manage Property
  • Michigan – House Corp Owned / Manage Property
  • LSU – Manage Property
  • UC Berkeley – House Corp Owned / Manage Property
  • Illinois – LLC Owned / Manage Property
  • Michigan State – Manage Property
  • Rutgers – House Corp Owned / Manage Property
  • Miami U (OH) – House Corp Owned / Manage Property
  • Southern California – LLC Owned / Manage Property
  • University of Texas – House Corp Owned / Manage Property
  • Acacia Fraternity Headquarters – Manage Property

Upper Crust Food Service

Upper Crust Food Service is the preferred foodservice provider of SAM National Properties and Sigma Alpha Mu.  For more information and a no-obligation proposal visit https://www.uppercrustfoodservice.com/sigma-alpha-mu/ or email Shana Smith, Director of Strategic Partnerships at [email protected].

Summary

Investment in student and fraternity housing can be successful both financially and operationally.  We can mitigate much of the risk when we structure an investment entity properly. We can oversee each investment property effectively with experienced and diligent management that handles the maintenance and administration of leases.

 

For more information about investment opportunities, please contact one of our staff members listed below.

Staff

Mike Weiner

SAM Property Management, Director of Property Management