Company Overview

Royal Properties is a company with one purpose: to develop, own and manage multi-family student housing near four-year universities throughout the United States. Roll-over year for more information.

1979: The origin of Royal Properties can be traced when Rodrick L. Schmidt purchased an 11-room rooming house on 209 East John St. in Champaign, Illinois. Schmidt owned and operated the rooming house for several years, and then—along with Michael J. Henneman—purchased the adjacent property, located at 211 East John. Both properties continued to be owned and operated as rooming houses through 1983.

1984: Royal Oak Apartments Limited Partnership was formed with Schmidt, Henneman and Eric Worner serving as the general partners. The partnership was formed to demolish two existing rooming houses on East John and construct a 24-unit student apartment complex with two- and four-bedroom apartments. Royal Oak Apartments Limited Partnership consisted of nine investment units at $50,000 per unit, invested over six years. The initial investment was $5,000, followed by four annual payments of $10,000 and a final $5,000 payment in the sixth year. After contributing $35,000 per unit, the project was refinanced, and the remaining $15,000 investment was not needed by the investor. From inception, the partnership performed beyond expectations, with the property enjoying virtually 100% occupancy. Operating expenses were at or below original projections, and the economic return outperformed original projections.

1985: Royal Crest Apartments Limited Partnership formed when Schmidt, Henneman and Worner bought a third rooming house directly adjacent to the Royal Oak Apartment complex. The rooming house was demolished, and the partners then constructed the Royal Crest apartments. The complex consists of three- and four-bedroom units with an underground-parking garage. The partnership was formed with 15 investment units at $20,000 per unit. This was a one-time investment, not staged, as structured in the Royal Oak and Court Limited Partnerships. The partnership performed beyond expectations, enjoying 100% occupancy from inception.

Royal Court Apartments Limited Partnership was formed by Schmidt and Henneman. It consisted of 10 investment units of $85,000 each. The partnership purchased two existing apartment complexes at 605 South 5th St. and 509 Bash Ct., both in Champaign, Illinois. The total package was 40 units, consisting of one-, two-, three-, four- and six-bedroom apartments. When purchased, the two properties were approximately nine and 11 years old, respectively.