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Frat House - Unit of Comparison and Income Data

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Jim Hild

Thread Starter
Freshman Member
Joined
Nov 26, 2003
Professional Status
Certified General Appraiser
State
Minnesota
I am appraising a frat house near the University of Minnesota and don't know what is a "typical" method of comparison. The house has 20 bedrooms, 3 common rooms, one kitchen, and 3 bathrooms. Like a dorm setup but it has a kitchen in the basement.

I've looked at the data and tried price per SF and price per room but the comp data is all over the place. Of course I've only got 4 sales to choose from.

Also, the income data is tough too. I've been told that the owners of the frat houses are very tight lipped about their rents and the rents paid by the frat boys are probably not the real rents because their frat alumi association typically helps subsidize rents for their greek brothers.

Any thoughts?

Thanks,

Jim
 

David Bailey

Freshman Member
Joined
Nov 28, 2006
Professional Status
General Public
State
Texas
Frat house = student housing. Numerous smaller private student housing facilities developed in recent years should provide a decent basis for comparison if you can't find greek housing sales. Usually priced as single-, double-, triple- and even quad-occupancy, so unit of comparison is probably going to be $/bed based upon max occupancy.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
Frat house value is based on the distance to and quality of neighboring sorority houses.

You can also use the kegger multiplier method.
 

Joker

Elite Member
Joined
May 28, 2002
Professional Status
Certified General Appraiser
State
Ohio
Frat house = student housing. Numerous smaller private student housing facilities developed in recent years should provide a decent basis for comparison if you can't find greek housing sales. Usually priced as single-, double-, triple- and even quad-occupancy, so unit of comparison is probably going to be $/bed based upon max occupancy.
I'd buy that argument.
 

SRQCUB

Sophomore Member
Joined
May 23, 2008
Professional Status
Certified General Appraiser
State
Florida
near, this tells me its off campus, not true on-campus frat/sorority house. Income is different, probally not even legal, why "owners" so tight lipped.
 

H.B. Userman

Junior Member
Joined
Nov 11, 2003
Professional Status
Certified General Appraiser
State
Wisconsin
Try using the $/frat house and adjust from there.
 

Dennis J. Black ASA IFAS

Senior Member
Joined
Mar 5, 2002
Professional Status
Certified General Appraiser
State
Florida
OSU,

Do you like the gravity tap multiplier or the pressure tape multiplier and how to you account for spillage?
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
A sorority house at The University of North Dakota just sold this spring if you are looking for sales! Let me know
 

Scott Gerharter

Freshman Member
Joined
Apr 1, 2005
Professional Status
Certified General Appraiser
State
Ohio
Just did one earlier this year in Toledo and used other off campus frat houses and smaller group housing rentals around the university. Pricing per bedroom or per person can be used. Investors who specialize in student housing are a decent source of data. Vacancy rates are difficult to establish but should be relatively low with a fraternity or sorority. A good strong look at enrollment trends at the university or college and competition from other student housing types, such as, apartments, single and duplex family housing is appropriate.
 

CBBoston

Member
Joined
Jan 27, 2008
Professional Status
General Public
State
Massachusetts
Don't assume that off-campus frats are illegal. At U Colorado all the greek houses are off campus. At many schools the greeks seem to switch houses evey few decades as they grow or shrink. As DB said they are just another form of student housing. My old frat got booted a couple years back when a pledge died from alcohol poisoning. The Alumni group that owns the structure turned it into general off campus housing and it now generates a healthy income stream from rentals. On the other hand around Boston there are lots of "illegal" off campus greek houses. Bottom line is you need to know the greek housing tradition at that school.
 
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