Greystar JV Lands $162M Student Housing Refi
Two projects totaling more than 1,000 beds, located in Washington and Oregon, are being refinanced.
Greystar and joint venture partner Tikehau Star Infra, a subsidiary of Tikehau Capital, have secured two loans totaling $162 million to refinance a pair of student housing communities. Affinius Capital originated the financing for the properties, which are located in Washington state and Oregon.
The Accolade, a 226-unit student housing community, is located at the University of Washington in Seattle. It features 597 beds and a fitness center, business center and library, as well as a rock climbing wall, coffee bar, Skye Lounge, bicycle storage, study spaces and rooftop terraces. The 21-story building includes studio and one-, two-, three- and four-bedroom units.
According to Yardi Matrix data, The Accolade was 100 percent preleased before the 2023 school year. Completed in 2022, community is located at 4126 12th Ave. NE.
Union on Broadway, meanwhile, is situated in Eugene, Ore., at 480 East Broadway. It is a 357-unit community featuring 582 student beds. Located at the University of Oregon, it includes studio and one-, two-, three- and four-bedroom layouts.
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Amenities at Union on Broadway include a fitness center, sun deck, spa, ping pong table, grilling area, roof deck, courtyard and study lounges. Yardi Matrix data shows that the community, completed in 2022, was 89 percent preleased for the 2023 school year.
In prepared remarks, Affinius Capital Principal Harris Neuberg said that top-flight public universities are experiencing record application numbers, further contributing to resiliency in student housing.
Year-over-year rental rate growth in student housing remains strong. The average rate per bed reached a record high in the middle of this year, marking the fifth consecutive month of annual rent growth exceeding 7 percent. Further, preleasing numbers at Yardi 200 universities are, as of May, up 0.4 percent on a year-over-year basis.
Greystone and Affinius Capital also recently closed on a $135 million mortgage loan for a Los Angeles community. The Rise Koreatown, a 363-unit property, is a Class A property featuring 47,417 square feet of retail space.