Core Spaces has secured construction financing for the development of its second student housing property serving students at the University of Southern California. Hub on Campus II, also known as Hub on Campus Los Angeles – Figueroa, will have 157 units and 577 beds when it is completed in time for fall 2023.
Square Mile Capital Management LLC served as the mezzanine lender with Pac West Bank as the senior lender. TSB Capital Advisors of Phoenix brokered the transaction on behalf of Core Spaces. Further details on the financing deal were not disclosed.
Harris Neuberg, Square Mile vice president, said in prepared remarks student housing has been one of the strongest performing real estate sectors over the last 18 months, especially at competitive universities like USC.
Core Spaces broke ground on the property in August. Located at the intersection of 28th and Figueroa streets, the site is about a half-mile from the campus entrance at Greek Row and within USC’s off-campus housing area. The building will have 292,683 square feet across seven floors.
Planned amenities include social spaces, a gym, swimming pool and 115 below-grade parking spaces. The property will also have 18 affordable and workforce units. Milender White is working with Core Spaces, Amplify Development and architects from Antunovich & Associates on the project.
Marc Lifshin, Core Spaces founder, said in a prepared statement this is the firm’s first financing transaction with Square Mile and Pac West. He noted Core West has had a longstanding relationship with TSB Capital Advisors.
Lifshin called USC a premier global institution with compelling investment dynamics and said Core Spaces vision for the site fits in with the company’s mission to provide well-located, innovative and hospitality-driven lifestyle experiences.
Core Spaces has just completed HUB on Campus Los Angeles – Coliseum, a seven-story property with 79 apartments and 305 beds, at 3800 S. Figueroa St. The firm, which acquires, develops and manages student housing properties, currently owns and/or manages 37 assets across the country totaling more than 16,000 units and beds.
It has a pipeline of more than 33,000 units and beds in various stages of development and acquisition. The expansion is aided by a joint venture partnership announced in February with two unidentified global real estate investors that committed to acquiring more than $1 billion of assets to establish the portfolio. Core Spaces will manage the properties.
In July, Core Spaces paid $62.4 million for a three-property, 626-bed student housing portfolio in Athens, Ga., near the University of Georgia, from Whistlebury Properties, according to public records. University Holdings brokered the deal and Webster Bank provided a seven-year, $37.8 million acquisition loan. The portfolio includes the 276-bed Whistlebury, the 206-bed Whistlebury Walk and the 144-bed Waterford Place.