By Keith Loria, Contributing Writer
Tuscaloosa, Ala.—Ellis-Trick Multifamily has received $19.6 million in financing for The Bluff at Waterworks Landing, a recently constructed, off-campus student housing community serving the University of Alabama.
Holliday Fenoglio Fowler L.P. arranged for the 10-year, 3.77 percent fixed-rate loan through Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program.
“It’s a newly constructed asset (built in multiple phases in the past few years) that is within close proximity to campus and has great floor plans and amenities,” Adam Herrin, HFF’s associate director, tells MHN. “It is also at the University of Alabama, which experienced a large increase in enrollment for the 2012-2013 school year.”
The Bluff at Waterworks Landing is located less than one mile from campus at 534 7th Ave., Northeast near the intersection of Jack Warner Parkway Northeast and McFarland Boulevard East.
“The location played a key role. One of the primary components of a successful student deal is location, as it is the number one amenity that students (and their parents) look for,” Herrin says. “Lenders know this and so it plays into their decision making regarding the student properties that they are comfortable financing.”
Ellis-Trick Multifamily has been an active developer and property manager in the Tuscaloosa area for more than 25 years. The company currently manages four properties in the Tuscaloosa market, with a total portfolio of approximately 1,023 units and 2,000 beds. The 162-unit, 308-bed property is a welcome addition to the area.
“Interest rates are at an all-time low and student housing is the most popular it’s ever been among lenders,” Herrin says. “Consequently, it was the appropriate time to seek financing in order to achieve the most favorable financing terms.”
The property is 99.7 percent occupied and includes three phases completed between 2008 and 2011, which are situated on a 10-acre site alongside the Black Warrior River. Community amenities include an infinity pool, tanning beds, business center and media room.
“The property features a spectacular clubhouse with an infinity edge pool and great views of the Black Warrior River,” Herrin says. “There is also a fitness facility, Internet stations and study area, underground and secured parking, and more.”
HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.