Brookfield Properties JV to Land $1.4B Refi for Student Portfolio
The properties are located across 16 states and 25 markets.
Image courtesy of Yardi Matrix
A partnership comprising several Brookfield Properties investment funds and Scion SZ is set to secure a $1.4 billion refinancing loan for a 39-asset student housing portfolio, according to a Fitch Ratings report. Morgan Stanley Capital Holdings, Goldman Sachs, Citi Real Estate Funding Inc. and Bank of Montreal will co-originate the two-year, floating-rate, interest-only mortgage loan, which includes three one-year extension options. The transaction is scheduled to close by Oct. 15, 2026.
Loan proceeds will retire $1.3 billion in existing debt, cover $25 million in corporate debt and $28 million in closing costs, and return $32.8 million of equity to the sponsorship. KeyBank National Association and CWCapital Asset Management will act as master and special servicer, respectively.
Nearly 25,000 beds scattered across 29 markets
Featuring a total of 24,960 beds and a weighted average completion year of 2012, the assets in the portfolio are located across 16 states and 29 markets. The majority of the properties are in Texas, North Carolina and Mississippi. The top three largest student communities are:
- Northpoint Crossing, a 1,925-bed property in College Station, Texas, serving Texas A&M University;
- Copper Beech San Marcos, a 1,250-bed property in San Marcos, Texas, serving Texas State University;
- Lark Northgate, a 747-bed property in Collage Station, Texas, serving Texas A&M University.
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Brookfield Strategic Real Estate Partners IV, IV-A, IV-B and IV-C, together with Scion SZ, have owned and managed the properties since acquiring them in 2021. Since then, ownership has invested more than $89.2 million in capital improvements, including $34 million in unit upgrades, $31.8 million to address inherited deferred maintenance, $12.8 million in amenity and property feature upgrades and $10.6 million in a large retail space conversion.
The portfolio has an aggregate as-is appraised value of $1.8 billion, while its portfolio market valuation stands at $1.86 billion. It reached 89.6 percent occupancy based on the October 2026 prelease rent rolls, according to Fitch Ratings.
As of August, preleasing across Yardi 200 clocked in at 93 percent, up 80 basis points from August 2025 and 120 basis points from August 2024, according to a recent Yardi Matrix student housing national report. The figure is expected to rise further, to approximately 94 to 94.5 percent. Performance remains uneven, however, with 52 schools recording below 90 percent in preleasing. North Carolina State was among them, at 78.8 percent, after 2,195 beds were delivered through August, with another 970 beds in the construction pipeline for 2027.
