Orion Real Estate Obtains Refi for Student Community
The 253-bed property came online in 1984.
Orion Real Estate Partners has refinanced The Timbers, a 155-unit, 253-bed student housing community in San Marcos, Texas.
JLL Capital Markets arranged the $19.4 million Freddie Mac loan that expires in 2031, according to public records. JLL Real Estate Capital services the loan.
The owner purchased the asset in December 2021 from The Jacobson Co. for $22.3 million, Yardi Matrix data shows. The company took out a $16.7 million acquisition loan from East West Bank, originated by CBRE Capital Markets.
The Timbers, which is 99.6 percent occupied, came online in 1984 and encompasses 34 buildings spread across almost 9 acres. The unit mix consists of one- to three-bedroom floorplans ranging from 476 to 1,064 square feet. Apartments feature private balconies, walk-in closets and in-unit washers and dryers.
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Common-area amenities include a fitness center, clubhouse with arcade, pet park, basketball court, barbecue station and a swimming pool. The property also has a spa and 300 parking spaces.
Located at 900 Peques St., The Timbers is within walking distance of the Texas State University at San Marcos campus. Downtown Austin is 31 miles away, while Austin-Bergstrom International Airport is 32 miles northeast.
The JLL Capital Markets team included Senior Director Dan Kearns, Vice President Patricia Heminger, Associate Rebecca Brielmaier and Analyst Katia Novi.
For an asset class that has been performing well despite economic volatility, in terms of student housing trends, industry experts have also identified loan assumptions as a solution. Even so, the supply and demand imbalance is creating some difficulties for investors.
Recent deal near Texas State University
Texas State University’s total enrollment for the 2023-2024 academic year was 38,722, a slight increase from the 38,171 registered a year before, according to Yardi Matrix information. For the 2024-2025 academic year, the university’s occupancy clocked in at 89.5 percent.
In August, Greystar purchased Uptown Square, a 316-unit, 512-bed student housing community serving the Texas State University. Inland Private Capital sold the 2015-completed asset.
