1761 Park Avenue, Long Beach, CA 90815

Stepp Commercial is pleased to present the Vibe Housing Long Beach Off-Campus Student Housing Portfolio, a collection of five well-located assets encompassing 216 beds. Vibe Housing employs a "by the bed" (216 beds in total) leasing model — a format widely adopted in purpose-built student housing — which rents furnished individual beds, rather than entire units. This approach is highly attractive to students, eliminating the need to coordinate roommates and offering more flexible housing options. For ownership, the model drives higher effective rents per unit and supports more stable, diversified cash flow. The Vibe Housing Portfolio benefits from consistent built-in demand by California State University, Long Beach (CSULB).

SEVERELY LIMTED ON-CAMPUS HOUSING INVENTORY

The subject portfolio is positioned within one of the most supply-constrained student housing markets in California. CSULB maintains an on-campus housing saturation rate of approximately 7–8%, with only 3,200–3,500 beds serving a student population exceeding 42,000.

As a result, more than 38,000 students are functionally displaced into the private rental market, creating a large and consistent market for off-campus housing. Even with planned future development, on-campus capacity is projected to remain materially below demand, reinforcing a long-term structural imbalance that directly benefits private student housing operators.

ACCELERATING ENROLLMENT

CSULB has demonstrated consistent and accelerating enrollment growth, reaching a record 42,003 students in the 2024–2025 academic year, with continued growth projected into 2025–2026.

This trend is driven by the university’s increasing national profile, academic breadth (190+ programs), and strong value proposition. Enrollment has grown approximately 10.7% since the post-pandemic dip, with multiple consecutive years of expansion, showing that demand for student housing is likely to remain strong and consistent.

HIGHEST APPLICATION VOLUME IN THE CSU SYSTEM

CSULB received approximately 84,000 applications in the most recent admissions cycle, a 25% increase over the prior four cycles, ranking first in applicant volume across the entire 23-campus California State University system. This expanding applicant funnel is a critical forward-looking indicator, reflecting both sustained demand for enrollment and a deep pipeline of future renters. The scale of applications relative to enrollment capacity ensures continued selectivity and stability, supporting long-term occupancy across well-located off-campus housing assets.

BUSINESS MODEL DRIVES CASH FLOW & RENT GROWTH

The portfolio operates under a student housing model that differs from traditional multifamily:

Per-bed or shared housing economics allow for higher effective rent per unit

Annual lease cycling aligned with the academic calendar enables consistent rent resets each year

• 25% student tenant retention provides a stable baseline of income

• Recurring demand refresh (new students annually) reduces exposure to long-term tenant stagnation

• Fragmented competition (limited purpose-built supply near campus) supports pricing power

EXPONENTIAL GROWTH OPPORTUNITY

Beyond in-place cash flow, the portfolio represents a scalable operating platform. The underlying business model—targeting underutilized conventional multifamily assets and repositioning them for student occupancy—can be replicated across additional acquisitions in the CSULB submarket. There is a clear opportunity to expand the portfolio through strategic acquisitions, standardize operations, and achieve economies of scale in leasing, marketing, and property management.