Managing the Process The property management and construction teams start working together at the beginning of the process – long before the facility is turned over. “Because we have so many beds that we’ve developed, constructed, and managed, we are much more proficient of knowing where we will have challenges,” says Bill Barkwell, president of Ambling Management Co., a division of Ambling. The property management team can look at the design plans and know instantly if everything is laid out efficiently. “We help look at it to make sure the property that is delivered is the most efficient, cost effective, and marketable in the area.”
In addition, the property management team will hire maintenance personnel long before the completion of the project, which gives them a chance to work with the construction company and understand the mechanicals of the building. If maintenance problems arise in the building, the technicians know where the plumbing and electrical lines run – they saw it all before the drywall was put up, says Barkwell.
It’s a common belief that students are harder on units, says Godwin. Overall, they’re not the best housekeepers so wear and tear is a major concern. To combat the problem, the company enforces monthly inspections, says Holmes. “This is not like an average multifamily community where the residents are usually only home at night. The students are there 24 hours per day,” he says. “Maintenance needs to be a regular issue.”
The walk-throughs ensure that the units are being properly cleaned and vacuumed. Regular vacuuming prevents the company from having to replace carpet every year, says Holmes. Ambling would like to get at least three years out of the carpet, and the only way it can do that is by making sure the carpeting is cleaned.
Product selection also is a big issue for Ambling. The company wants to use products that will last because furniture can cost $5,000 to $6,000 per unit. So, the company only uses solid wood furniture with laminate tops that won’t show marks, says Godwin. “We don’t want to replace it every three to four years,” says Holmes. “We want to get 12 years to 15 years out of our dressers and desks, and at least five years to six years our of our sofas and chairs.”
The kitchen and bathroom appliances and products are pretty much your standard multifamily, says Godwin. “A lot of the finishes we are using are class A.” In addition, the company is using more commercial-grade products and finishes, such as countertops and carpeting, says Holmes. “We are using ceramic tile, which is a little bit more expensive on the way in, but long-term, it lasts longer.”
Team Approach While Ambling has a set list of products and services that it likes to use and almost always offers at its off-campus product, when it comes to on-campus housing, the university is the client. It has to find solutions to integrate the products and services that the university desires, all within a given price point.
For instance, McNeese State University in Lake Charles, La., tried to renovate and maintain its existing residential buildings, explains Ricky Mestayer, dean of student services. But it quickly realized it was putting Band-Aids on 30-year-old maintenance problems.
While the university recognized that it would be cheaper to tear down the buildings and rebuild, it had three major problems: some of the buildings were still under bond and indebtedness, demolition costs would be expensive because of asbestos issues, and it needed a product that would be affordable to its students, says Mestayer.
It turned to Ambling for assistance, and the company was able to tackle these issues, says Godwin. To fulfill the university’s desire to have a class A property in the middle of campus, but at a certain price point for its students, Ambling designed a building that has shared bedrooms. So, while the trend in student housing is to offer single bedrooms, there are only a select group of singles available.
No matter what the case, Ambling will work with a university to develop and manage a plan. “Typically the dorm is an extension of their campus,” says Godwin. “So, we will take the university’s rules and regulations and apply them across the board.”
At the end of the day, “the key to a public-private partnership is trust,” says Lee White, executive vice president at George K. Baum & Co. one of Ambling’s investment bankers in Denver. “Traditionally, universities have been suspicious of the private sector; they think they will be taken advantage of. Because of their integrity, [Ambling has] successfully overcome misplaced fears.”