A private 500 bed residence hall located adjacent to campus at the University of Kansas. Built in 1965, Naismith Hall was a 50% occupied dormitory with dated interiors and significant management turnover. Bromley, in a 30 day period, purchased the fee interest in an all-cash transaction from LNR, who was acting as a special servicer for the lender.
After taking control in January 2013, The Bromley team took over management of the dormitory and installed our Tice Food Service division to manage the building’s dining room. In less than eight months, we initiated and completed a major amenity upgrade to the building including new fireplace lounges, exercise rooms, computer labs, community kitchen, and group study rooms. Concurrently, Bromley overhauled the property’s marketing and sales program, including new websites and a comprehensive marketing campaign. Furthermore, we rapidly developed relationships with key University of Kansas groups, including the athletic department and School of Business, in order to enhance occupancy.
Occupancy grew by over 25% in our first year of ownership and pre-leasing for the following year was 100%. Bromley recapitalized the property in 2013, taking out nearly 80% of its initial equity with an appraised value significantly above its purchase price. In 2020, the property was master leased to the University of Kansas and, in 2021, Bromley sold the property, generating a significant return on investment.