After arranging a $28 million bridge loan for Woodland Ridge Apartments in Woodridge, Ill., Eyzenberg & Co. has tapped Greystar to develop Grove Park, a 12.3-acre student housing community in Chapel Hill, N.C. The firm also has structured the ground lease for the redevelopment on behalf of the owner, Townhouse Apartments LLC, which will serve students attending the University of North Carolina at Chapel Hill. The project will replace the current 111-unit apartment community at the site.
“The ground lease proved accretive to the capital structure by reducing the amount of equity needed for the development and engineering a better yield-on-cost than can be achieved were the land to be purchased outright,” David Eyzenberg, president of Eyzenberg & Co., told Multi-Housing News.
Student housing demand
Located at 425 Hillsborough St., the parcel will soon be home to a new 348,886-square-foot property that is situated a short walk from the university and Franklin Street, the town’s social hub. The 339-unit asset will provide 850 beds across both apartment and townhome floorplans, as well as a five-story parking garage. Groundbreaking for the project is scheduled for this summer, and the community is slated for completion by the 2020-2021 academic year. Amenities will include:
- Study spaces
- Swimming pool
- Fitness facilities
- Rooftop deck
“The existing community was dated and not purpose-built student housing. There are only 1,094 beds of purpose-built, pedestrian-to-campus student housing units for a student body of over 30,000,” added Eyzenberg. “The development site is very attractive because it is a third of a mile from both the campus and downtown. It is the only development site available that is walkable to campus, and this development had the support of the town.”
Robert Ginsberg and Diana Davidson assisted Eyzenberg in structuring and closing the transaction. Townhouse Apartments LLC developed the product concept, managed the design, coordinated the entitlement and delivered the permits.
Image courtesy of Eyzenberg & Co.