MidCap Closes First Mortgage Loan for Student Community Refi

The lender provided a $20 million loan for The Arch, a 252-unit property in Louisville, Ky.

by Laura Calugar

The Arch in Louisville, Ky.

The Arch in Louisville, Ky.

Louisville, Ky.MidCap Financial, a leading commercial finance company focused on middle market transactions, recently announced the closing of a transaction with Harrison Street Real Estate Capital. The property involved in the transaction is a recently constructed, purpose-built student housing community known as The Arch in Louisville, Ky. MidCap Financial provided a $20 million first mortgage floating rate loan with a term of up to five years. Loan proceeds were used to refinance the original debt and fund other capital improvements to the property.

The Arch in Louisville, Ky.

The Arch in Louisville, Ky.

Located at 2501 South 4th St. in Jefferson County, Ky., The Arch is a two- and three- bedroom property that contains 252 Class-A units with 656 beds. The property was built in 2014 and previously operated as The Grove until Harrison Street rebranded it as The Arch in 2015. According to Yardi Matrix data, the total size of the student community is more than 284,000 square feet and the average rent per unit in 2016 is $1,498. Common area amenities include a fitness center, a swimming pool and covered parking.

This is Harrison Street Real Estate Capital’s first transaction with MidCap Financial. Financing was arranged by Stephen Skok of Holliday Fenoglio Fowler LP.

MidCap Financial is a middle market-focused, balance sheet lender that provides debt solutions to companies across all industries. The company’s subsidiary, MidCap Financial Services LLC, is headquartered in Bethesda, Md., with regional offices in Atlanta, Charlotte, Chicago, Los Angeles, New York and San Francisco.

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