Brickstone Lands Boulder Student Housing Refi
Blackstone Real Estate originated two senior loans for the downtown community.
The Lodge. Image courtesy of Clarion Partners
Brickstone Partners has secured a major refinancing of its two student housing communities in Boulder, Colo. Blackstone Real Estate originated two senior loans that will be used to refinance the student housing portfolio owned by Brickstone and Daniel Otis, founder & principal of Brickstone. On top of the senior loans, Clarion Partners Real Estate Income Fund Inc. (CPREIF) provided mezzanine loans that are subordinate to the two senior loans, which were arranged by KeyBank Real Estate Capital.
Brickstone’s student housing portfolio in Boulder includes two communities that were recently valued at $180 million and renovated in 2015 and 2016. The portfolio totals 312 units and 463 beds. The units now feature stainless steel appliances, quartz countertops, oversize closets and wood-style flooring. Both properties are located within walking distance of the University of Colorado Boulder campus and near Pearl Street Mall and downtown Boulder.
Janet Souk, portfolio manager at CPREIF, said in prepared remarks that rental properties rarely come to market in Boulder. She added that Clarion Partners is confident that the city’s student housing market will continue to grow, considering it has maintained a very high occupancy rate.
Student housing portfolio
Since its founding in 2001, Brickstone has been involved in more than $1 billion of real estate transactions, half of which have been in Boulder, where the firm is one of the largest student housing operators. Properties include The Lodge, a 371-bed student housing community, and the Landmark and Stone Creek apartment communities that total 288 units. Most recently, the firm has been focusing on acquiring and developing multifamily housing in legacy locations with desirable markets.
In August, the company added another asset to its Boulder portfolio. The firm acquired the 163-unit Kensington Apartments located next to the University of Colorado Boulder campus. Brickstone budgeted $71 million to acquire, renovate and reposition the community with safety features, new amenities, a clubhouse and exterior landscaping.
