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SHB: What are you spending most of your time on right now?
Travis Prince: Searching for camps to get these kids out of the house this summer! The last few months we’ve spent connecting with clients and sharing information. Early on, conversations were focused on how to keep deals together, then evolved to discussing monthly occupancy and collection data, and now, as market sentiment has improved, we’re back to talking about acquisition opportunities for the second half of this year. What I’ve enjoyed most about the time on the phone these last few months has been sharing personal experiences in navigating these crazy times. While there’s nothing to replace being face to face, I’ve really enjoyed hearing kids and dogs in the background of the calls — it brings that human element to what we’re doing.
2. SHB: Are any transactions still moving forward? If so, how do you make that happen?
Travis Prince: We’ve experienced a little of everything the last few months. While most of our deals remain on pause, the acquisition deals currently in escrow have required revenue guarantees, long and bifurcated due diligence and financing contingencies. Our development deals not seeking immediate funding are proceeding on schedule with no loss of market interest or pricing impact.
3. SHB: What will it take for the investment market to "snap back" once we are through the worst of this situation?
Travis Prince: Better optics on what happens this fall. That starts with the universities making definitive announcements about in-person classes (June is a big month), followed by a jump in pre-leasing as a response and then capped off with a thawing of the capital markets once we can demonstrate strong enrollment and occupancy data. I think we will see significant investment activity the second half of this year in those markets that deliver strong numbers.
4. SHB: What is your advice to prospective buyers and sellers in the marketplace?
Travis Prince: Get ready. It’s too early to see what distress may materialize as a result of this pandemic but sharpen your pencils for deals in markets that come through this unscathed, as we expect pricing there to be robust.
5. SHB: And on a personal level, what is the one thing you most look forward to doing once we get past this pandemic and life/society get back to "normal?"
Travis Prince: In Tampa, we’ve been phasing in for over a month, and it’s been encouraging to see the level of activity approaching normal at some of our favorite spots. What’s not back that I’m most looking forward to is getting to a live sporting event.
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