Traditional logic would say no -- the construction of new college student housing in Harrisonburg won't increase the load on elementary schools, as most college students do not have elementary school aged children....

Going a step further, I would guess that some local government staff and elected officials MIGHT (?) use this traditional logic when thinking about whether to approve rezonings, or other approvals, for new student housing to be built in the Harrisonburg area.

But wait - what if the following sequence happens (thanks Deb, with some revisions)....

• Shiny new student housing is built.
• College students flock to the new living options.
• Vacancy rates increase at older, run down student housing complexes.
• Families start moving into older student housing complexes.
• These families increase the elementary school aged population.
  
• Local elementary schools have more students to educate.
  

I think we have seen this happen over the past 20 years in Harrisonburg, in cycles, as large quantities of student housing is built in waves. 

And think about it, from the other direction, for a moment -- we all know that the local elementary school population is growing -- but why, and where? It's not as if local developers and builders are out building an extraordinary number of townhomes or starter homes for young families, causing an influx of new elementary school students.  So -- if the elementary school population is rising, and it's not because of an increase in the stock of owner occupied real estate in Harrisonburg, then....

1.  Perhaps this elementary (or K-12, really) school enrollment growth is, contrary to what we'd otherwise believe, a direct result of an increase in college student housing.

2.  Perhaps we need to think about the fiscal impact of educating more elementary (and then middle and high) school students when we think about approving yet another student housing complex.

3.  Perhaps, if building new student housing when we might not really need it, leads to increased demands on our local K-12 schools, then maybe we need to pay more attention to whether that student housing is needed.

Just some thoughts to ponder as we think about and plan for the future here in the City of Harrisonburg -- and Rockingham County.

 

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Perhaps not quite as interesting (or pervasive) as JMU's ownership in the Forest Hills neighborhood -- but interesting nonetheless.

This is another older residential neighborhood adjacent to the JMU campus.  It will be interesting to see over time if JMU purchases more of these homes as another potential direction in which to expand the campus. 

Thus far, their focus seems to be mainly on the corner of South Main Street and Port Republic Road.

Download a larger (23MB) map here.
 

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  Download a larger (21MB) version of this map here.

This past Spring, JMU's student newspaper (The Breeze) published a very informative article about the Forest Hills neighborhood....

JMU purchases most of neighborhood for over $4 million

Some pertinent excerpts from that article follow....

• Over the last four years, JMU has purchased 14 homes in the 16-home neighborhood for approximately $4.2 million, according to public housing records obtained by The Breeze.
   
  
• Bill Wyatt, director of communications and university spokesperson, said the area was purchased to provide JMU faculty and staff with the opportunity to rent homes from the university, and that there are currently no long-term plans for the area.
   
  
• The funding for these purchases comes from JMU's auxiliary reserve account, which consists of funds held back on an annual basis for things like property acquisition and unexpected maintenance. The rent that faculty and staff pay back to the university makes it a breakeven proposition.
  

Since I understand things better visually, I created the map at the top of this post to better show the context of these real estate transfers.  You can download a rather large (21 MB) version of this map here.

(the Breeze article as a PDF can be found here)
 

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Altitude at Stoneport will soon be built on Port Republic Road, with room for 425 students.

The Retreat is nearing completion on Reservoir Street, with room for 700 students.

JMU enrollment is growing, but only by about 350 students per year.

And now, a 22 unit apartment building is proposed for the edge of the Purcell Park neighborhood -- which is and is not applicable to the matter at hand....

So, here's the deal....

1.  A local resident (developer) is intending to replace two older single-family homes with a mixed-use complex with restaurants, retail space and (22) one-bedroom apartments.  STAFF recommends approving it.  PLANNING COMMISSION does not.  CITY COUNCIL might, or might not approve it.  Read more here: Planners Discuss Decision.

2.  Many neighbors of the proposed development are opposed to this potential development - because it would increase traffic, change the nature of the neighborhood, increase the population density in that area, and because some believe it will just be filled up with college students.

3.  A JMU official (coordinator of off-campus life) wrote a letter on JMU letterhead to City Council and residents of the neighborhood indicating that JMU has no need for more off-campus housing.  Read the entire DNR article here (JMU: Official's Letter On Zoning Issue Not Official) or an excerpt of the LETTER here....

"Additional apartment-based housing is not needed at this point in the community, and might actually be detrimental to current properties who are having difficulty reaching capacity with tenants and profiting,"

4.  The developer's engineer indicates that the apartments are not designed for college students.

OK -- so -- let's sidestep the issues of the aforementioned letter not really being JMU's official position on the matter AND whether or not the apartments are or are not intended for or suited for college students.

Instead, let's think about (talk about?) whether Harrisonburg needs more off campus student housing.

So -- do we need more?

Most student housing developers coming to the area would say that we do -- but they might always say that?  After all, the newest and nicest student housing (almost) always leases quickly. 

In contrast, I would argue that all income college students (for 2018-19) could easily fit into existing on and off campus housing, even without the addition of The Retreat or Altitude.

So, why do these new complexes keep showing up?  Because the newest and nicest complexes always lease quickly.  And because a student housing developer can make money by building such a development in this area.  And because the City and/or County continues to approve these developments -- perhaps not feeling it is their place to decide whether there is a need for more housing.

Side note -- should City/Council decision making bodies approve or disapprove student housing based on whether there is a need for more?  I do not recall any instances when this is a question that these governing bodies discuss -- they seem to assume that the developer wouldn't be proposing it unless it were needed (which is not necessarily true -- see above) and then just move on to whether it is reasonable to develop the proposed land in the proposed manner.

So, if student housing developers will always want to build more, and local decision makers might keep approving the developments independent of whether there is a need or not, I might just be wasting my time to continue to think about all of this -- but I'll continue nonetheless.

I think we (citizens, tax payers, elected officials) need to realize what happens when more student housing is approved when there is not necessarily an actual need for more such housing.  And the place to look to best understand this is the oldest student housing.

What typically happens when new student housing is built is that the oldest (and/or least conveniently located and/or least upgraded) student housing eventually starts having higher occupancy rates, and then eventually starts being leased to folks who are not college students.  All of that is well and fine and good -- except that it means that the rental income often declines, the properties aren't maintained as well, vacancy rates climb higher, rental income drops lower, property maintenance declines further, etc.

So -- we end up having (or will end up having) older apartment complexes that used to be college student housing -- that are now rented to non-students -- often to low income individuals and families -- and that are often not maintained as well as when the rental income allowed for them to be better maintained.

Is this (college housing potentially becoming low income housing) a bad thing?  Not necessarily -- but I think that we need to realize that this is often the eventual, market driven, impact of continuing to approve new student housing developments.  Are we comfortable with this long term end to our short term decisions?  Is this the way that we want to grow our housing stock? 

Hopefully I have provided MANY more questions than answers.  :)  Feel free to drop me a line to discuss, or offer your opinions and perspectives.
 

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Seems like this will be an attractive structure -- and not just a big box with vinyl siding.  Read more about the plans for this student housing complex here.

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   view a larger image

The property shown above was sold for $1.76 million to a new developer from Richmond, VA who will start site work in August for this 250,000 square foot student housing complex planned to be open for Fall 2019.

Some highlights from yesterday's Daily News Record article...

• Altitude will be modeled somewhat after the 865 East building on Port Republic Road.
   
• Walker said he thinks the security features, popular at 865 East and with James Madison University student and parent focus groups, and the nearly 2,500-square-foot deck space with garage-type doors that can be opened or closed based on the weather "will really resonate" with potential renters.
   
• "We wanted to take a cue from the 865 East product type," he said, "and rather than do another garden-apartment project, with walk-up steps, we wanted to do something with interior corridors, key-fob entrance and elevators. With some of my partners, we concluded that was a void within the market."
   
• Eighty-seven of the units will have four bedrooms and four bathrooms, and Walker said those spaces should rent for about $650 per bedroom. Altitude also will have two- and one-bedroom units, with the one bedrooms leasing for about $1,100 a month.

 
Here is the original rendering of the planned student housing complex....

   view a larger image

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If you are looking to purchase a rental property for your JMU student to live in while they are a student at JMU, there are two basic paths you could go down....

Option 1 --  A property in a traditional student housing neighborhood. These will allow the most students to live in the property and will maximize the rental income per dollar spent on the purchase.  However, it will also expose you to a more turbulent segment of the market, as rental rates and sales prices of these properties can vary quite a bit over time as the supply of competing student housing ebbs and flows based on large complexes being built by student housing developers.  You can find purchase options in this category here.

Option 2 -- A townhouse in a community that has many owner occupants, some non-student renters and some student renters.  Many of these will not allow as many un-related students to live in the property (per zoning regulation or restrictive covenant) and will not provide quite as much rental income per dollar spent on the purchase price.  However, they will be in segment of the real estate market that is much more predictable and less volatile from a rental rate and/or sales price perspective.  You can find purchase options in this category here and here.

I work with parents of JMU students each year who go down each path outlined above, each for different reasons.  Most of the time, though, it boils down to their tolerance for risk or their desire for reward.  It can also be related to their intended time horizon for owning the property.

If you are interested in buying a rental property for your son or daughter to live in while they are at student at JMU, let me know.
 

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The forthcoming hotel and conference center being built on the edge of the JMU campus, held its ceremonial groundbreaking yesterday.  The project is due to be complete by March 2018. 

Read more in today's Daily News Record article, or read on for some highlights....

• The hotel will contained 230 rooms.
   
  
• The conference center will offer 21,000 - 2,000 square feet of meeting space.
   
  
• The developer is a JMU graduate, Paul Gladd with dpM Partners of Gaithersburg, MD.
   
• The hotel will feature 180 traditional rooms, 50 extended-stay rooms, a farm-to-table restaurant, a coffee bar and wine bar.
   
• The developer is paying $35M to build the hotel, while the JMU Foundation is loaning $11M to the Harrisonburg Industrial Development Authority to cover the cost of the conference center construction.  The JMU Foundation will be repaid with tax revenues generated by the facility.
  

There are quite a few more interesting details in today's Daily News Record article.
 

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   click here for a larger version of this aerial image

If you have driven along Reservoir Street lately, you would have noticed the massive area on the hospital side or Reservoir Street where trees have been cleared for a new housing development.  This site will soon be home to 700 college students in a new development called "The Retreat at Harrisonburg", being developed by Landmark Properties out of Athens, GA.

The developer has acquired 36.81 acres for $5.71 million in August after the land was rezoned in May to allow for this community to be developed.  This same developer is (per their website) also currently developing The Retreat at Blacksburg, a student housing community for 829 students.

Read more about this purchase and development in this Daily News Record article....

Student Housing Developer Buys County Land
August 30, 2016

Here is the intended site plan....



Per documents submitted to the County, we know the following about this potential student housing community....

• the community would be a mix of detached homes, duplexes and quads
• amenities would likely include a clubhouse with fitness center and study facilities, outdoor swimming pool, outdoor gaming courts and extensive walking and biking trails
• this community would have no more than 178 residential units and no more than 715 beds (bedrooms)

Here is a rendering of one of the proposed homes....



 

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Based on enrollment projections approved by the State Council of High Education for Virginia and published by JMU, on campus enrollment is set to continue to increase in coming years....

• Though still an estimate, enrollment likely surpassed 20K this past year.
   
  
• Enrollment will likely grow past 21K in 2018-19.
   
  
• Enrollment should hit 22K by 2021-22.
  

Of the variety of different figures that exist within the enrollment projections, the "Total On-Campus Headcount" is typically seen as the most pertinent relative to our local housing market.  This figure is the best reflection of the number of students who will need housing, either on JMU campus, or off campus.  These figures, and their changes over time, are the best numbers to be using when analyzing the need for off campus student housing in Harrisonburg.
 

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   click here for a larger image

Enjoy a really (really, really) short walk to the JMU Campus (and Starbucks and Purcell Park) from this  recently built (2011) home with upscale features both inside and out including a HardiePlank and brick exterior, a composite deck with vinyl rail, covered front porch, hardwood floors, granite countertops, ceramic tile in the bathrooms and so much more. The main level features a kitchen with dining area, living room, dining room and office, upstairs you will find a large master suite plus two additional bedrooms and a full bath. The recently finished lower level features a large rec room, the laundry room plus a fourth bedroom and third bathroom. Don't miss the propane fireplace, high end clothes washer and dryer, two heat pumps, hardwood treads and much more!

View high resolution photos of this home by clicking the collage below....



Or, walk through the home by clicking the image below....


  
Find out more about this home at 117PortRepublicRoad.com.
 

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    click here for a larger version of the map  or here for a PDF

The map above shows where JMU college students live, in a few categories of housing....

• JMU Residence Halls (purple squares)
• corporately owned apartment complexes (green squares)
• individually owned single family or multi-family homes (orange squares)
  
• townhouses/condos you could purchase, primarily for undergrads (red text)
• townhouses you could purchase, primarily for grad students (blue text)

If you are interested in purchasing an investment property in Harrisonburg, you may want to check out HarrisonburgInvestmentProperties.com -- or, feel free to drop me an email (scott@HarrisonburgHousingToday.com) and we can discuss the best opportunities for you.

 

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   click here to view a larger version

This (above) is a nice view of the intended building layout in the quadrant bounded by Main Street, Martin Luther King, Jr. Way, Mason Street and Grace Street. 

The Mason Street Parking Deck is currently in the early (very early) stages of construction.  Madison Hall exists, but will be renovated.  Hotel Madison is yet to be started.
  

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Have you heard the news of JMU's plans for a brand new convocation center at the intersection of University Boulevard and Carrier Drive, across from the JMU Arboretum?

With the unprecedented growth experienced by JMU and the Shenandoah Valley the time is now for a facility to showcase and build upon the economic vibrancy of the region. The 8,500-seat structure will play host to a myriad of events annually, including basketball games, public speakers, university convocation and graduation, high school graduation ceremonies, concerts, conventions, trade shows and family entertainment options.

The vision for this new facility is very exciting - check out lots of images, a video, details of the interior of the facility and so much more at JMUConvo.com.

  

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Based on enrollment projections approved by the State Council of High Education for Virginia and published by JMU, on campus enrollment is set to continue to increase in coming years, surpassing 20K students for the first time in the 2017-18 academic year.

Of the variety of different figures that exist within the enrollment projections, the "Total On-Campus Headcount" is typically seen as the most pertinent relative to our local housing market.  This figure is the best reflection of the number of students who will need housing, either on JMU campus, or off campus.  These figures, and their changes over time, are the best numbers to be using when analyzing the need for off campus student housing in Harrisonburg.

Read more about student housing in Harrisonburg, past, present and future here.
 

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A public hearing has been set for October 14th at 7pm at which time details for the proposed Hotel Conference Center will be presented to Harrisonburg City Council and the general public.

WHEN: Tuesday, October 14 at 7:00pm

WHERE: Harrisonburg City Council Chambers

Further details (Oct 8 update) include....

• The hotel will have 205 rooms.
• The connected conference center would be called the Shenandoah Valley Conference Center.
• The hotel would cost $30MM to build - funded by the private developer.
• The conference center would cost $10MM to build - funded by the JMU Foundation.
• JMU would build a 5-level parking garage for more than 1,000 vehicles.
• The complex would feature seven meeting and conference rooms, two ballrooms, a restaurant, pool, fitness and business center.
  

Here's a brief history of this project....

• Oct 2014: Plans Unveiled For Downtown Hotel Complex (Daily News Record)
  
• Sep 2014: Conference Center Proposal Returning (Daily News Record)
  
• Sep 2014: Conference Center Still Alive? (Daily News Record)
• Jun 2014: No Shortage Of Conference Center Interest (Daily News Record)
  
• Jun 2014: Developer Surprised Hotel Deal Died (Daily News Record)
• Jun 2014: Chenault Signs On To Conference Center (Daily News Record)
• Jun 2014: Council Waits For Hotel Documents (Daily News Record)
  
• Jun 2014: Hotel/Conference Center Details Going To Council (Daily News Record)
  
• Dec 2013: Downtown Hotel Figures Submitted (Daily News Record)
  
• May 2013: Conference Center Details Line Up (Daily News Record)
  
• Jan 2013 - City Council asked the developer to conduct a feasibility study
• Nov 2012 - No new proposals were received.
  
• Sept 2012 - City Council discussed proposal, decided to seek competing proposals.

high resolution versions of the renderings displayed above

  

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PROPOSED GROCERY STORE ON HOLD
Per today's Daily News Record, the grocery store proposed to be built on the corner of North Main Street and Mt Clinton Pike may not be built after all -- or at least, the rezoning request has been put on hold.  Read more in today's Daily News Record.


DOWNTOWN HOTEL & CONFERENCE CENTER DISCUSSED AGAIN
Plans for a Hotel and Conference Center intended to be built for downtown Harrisonburg as a partnership between a private developer, JMU, and the City of Harrisonburg may be coming back to life.  The matter will be discussed anew at Tuesday's City Council meeting.  Here's the history of this topic, including an article from last Friday....

• Sep 2014: Conference Center Proposal Returning (Daily News Record)
  
• Sep 2014: Conference Center Still Alive? (Daily News Record)
• Jun 2014: No Shortage Of Conference Center Interest (Daily News Record)
  
• Jun 2014: Developer Surprised Hotel Deal Died (Daily News Record)
• Jun 2014: Chenault Signs On To Conference Center (Daily News Record)
• Jun 2014: Council Waits For Hotel Documents (Daily News Record)
  
• Jun 2014: Hotel/Conference Center Details Going To Council (Daily News Record)
  
• Dec 2013: Downtown Hotel Figures Submitted (Daily News Record)
  
• May 2013: Conference Center Details Line Up (Daily News Record)
  
• Jan 2013 - City Council asked the developer to conduct a feasibility study
• Nov 2012 - No new proposals were received.
  
• Sept 2012 - City Council discussed proposal, decided to seek competing proposals.
  

CITY DOG PARK OPENS
Stop by Smithland Road to visit the new City Dog Park, or read all about it in last week's Daily News Record article.
 

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    click here for a larger version of the map  or here for a PDF

Enjoy this updated map showing where JMU college students live, in a few categories of housing....

• JMU Residence Halls (purple squares)
• corporately owned apartment complexes (green squares)
• individually owned single family or multi-family homes (orange squares)
  
• townhouses/condos you could purchase, primarily for undergrads (red text)
• townhouses you could purchase, primarily for grad students (blue text)

If you are interested in purchasing an investment property in Harrisonburg -- for college students, or not -- feel free to drop me an email (scott@HarrisonburgHousingToday.com) and we can discuss the best opportunities for you.

 

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JMU students, faculty and staff will now be able to get their favorite caffeinated beverage on the run via a Starbucks truck that will be rolling through JMU campus this year.

Starbucks has partnered with three universities as a trial of this new concept: James Madison University, Arizona State University, and Coastal Carolina University.

Per the news release from Starbucks....

The new truck, a pilot mobile service coming to three college campuses this fall, offers a menu of drinks and food nearly identical to what customers would find in their neighborhood Starbucks stores.

The Starbucks mobile truck can move to various locations on campus throughout the day, making it convenient for students and faculty to grab a snack or beverage. While hours will vary on each campus, trucks are able to adjust business hours to suit the needs of their customers, in some cases staying open later than a dining hall.

The Starbucks truck will start operating at JMU on August 25.  The photo above is a photo from Starbucks -- but I'm eager to see what the actual truck looks like on JMU campus.  If you see it in action, email me a photo of it to scott@HarrisonburgHousingToday.com.
 

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   click here for a much more interesting larger version of this image

JMU is hoping to close a section of Mason Street and Grace Street internal to land that they now own on both sides of each street to make the area more pedestrian and bike friendly. 

Read lots of details in this article from yesterday's Daily News Record.
  

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