Wake Forest Student Housing Associates LLC has borrowed $18.8 million to refinance a 270-bedroom student housing community in Winston-Salem, N.C., after purchasing and expanding the property. Hunt Real Estate Capital provided the 10-year, Fannie Mae convention loan.
The purpose-built student housing community, Villages at Wake Forest, offers 69 units, each of which has three to four bedrooms. Located at 961 Palm Drive No. 10, the property comprises 58 cottage-style buildings of one to two stories. Wake Forest Student Housing bought the asset in April 2018 and constructed an additional five buildings, which added 20 bedrooms in January of this year. Amenities include a pond, fire pit and outdoor lounge area.
The rent-by-the-bed property is located a short distance north of Wake Forest University, a private institution with an enrollment of more than 5,100 undergraduates, and is fully occupied by students. The university requires students to live on campus for three years but does not have on-campus housing for seniors, making the property an attractive option for many upperclassmen.
The new loan features 3 years of interest-only payments followed by 7 years of amortization. Yield maintenance applies for the first 114 months with a 1 percent prepayment. Hunt Real Estate Capital, which services a commercial loan portfolio of $15.8 billion, previously worked with the borrower in a 2015 deal.