A partnership between PeakMade Real Estate and Blue Vista Capital Management is planning the development of Theory Gainesville and Theory Interlock, two Class A student housing communities totaling 1,535 beds in Gainesville, Fla., and Atlanta.
Pacific Western Bank and Square Mile Capital Management secured $93 million in construction financing for Theory Gainesville, according to a statement from Square Mile Capital. Pacific Western was the first mortgage lender and Square Mile Capital provided mezzanine financing. Truist Bank provided construction financing for Theory Interlock. Both projects are slated for completion in the fall of next year.
Spanning 5.4 acres, Theory Gainesville will encompass four buildings and 861 beds across 298 units, varying from studio to townhome units. Community amenities will include a swimming pool, fitness center, clubrooms and bike parking. Located near the intersection of Fifth Avenue and N.W. 13th Street, the community will be half a mile from the University of Florida campus and within a mile of downtown Gainesville. University Towne Center, comprising various retail options, is within 3.5 miles from the property.
The 674-unit Theory Interlock will comprise a seven-story building and 240 units, from studio to five-bedroom and townhome floorplans. Common-area amenities will include a rooftop pool, fitness center, two courtyards, study rooms and a two-story club room. Located at the intersection of Northside Drive and Ethel Street, the community will be within half a mile of the Georgia Institute of Technology and will be above a Publix grocery store and other retail options.
Student markets with strong development pipelines
Both institutions are among the country’s top 20 universities with the most beds underway. As of March, the Georgia Institute of Technology registered a 53.3 percent prelease rate and some 3,163 bedrooms underway. With a slightly lower development pipeline, the University of Florida had 2,411 beds under construction and registered a 67.8 percent preleasing rate, a recent Yardi Matrix report shows.
Another 502-bed community, developed by Lincoln Ventures, which is adjacent to the University of Florida, broke ground last year and is expected to come online in the summer of 2023. Landmark, alongside W5 Group, is also developing The Metropolitan at Gainesville, a 464-bed property in the area.