Alliant Credit Union Provides $52M for 2 Student Housing Assets
- Jul 23, 2021
Alliant Credit Union has supplied $52 million in financing for two Class A student housing properties in Austin, Texas, and Statesboro, Ga. The loans were brokered by Walker & Dunlop’s Director Josh Perew and Daniel Kaweblum, senior vice president with FM Capital.
The 2019-built Inspire on 22nd in Austin, Texas, received a $39.05 million loan, structured to allow for acquisition through a Delaware Statutory Trust. The borrower was Versity Investments. The credit grants an interest-only period and provides flexible exit options.
In a separate transaction, Alliant originated a $13 million loan for the refinancing of The Vault at Statesboro, a 528-bed student housing complex in the vicinity of Georgia Southern University. The loan replaces a higher-priced bridge loan and comes with an interest-only period, earn-out upon full stabilization and flexible exit options.
According to Paul Letourneau, Commercial Loan Originations Manager at Alliant, low interest rates continue to prompt borrowers to look for refinancing and value-add acquisition opportunities, with a focus on properties situated near power conference schools.
Inspire on 22nd
The 18-story tower features 451 beds and is located at 2200 Nueces St., two blocks from the University of Texas at Austin. The property—currently owned and managed by Capstone Communities—encompasses a mix of one- to five-bedroom units and retail space. According to Yardi Matrix, 13 units are affordable.
On-site amenities include a rooftop pool, spa, fitness center, business center, clubhouse and rideshare service, and residents have access to 146 subterranean parking spaces. The Bullock Texas State History Museum, the Pease District Park and a variety of dining and shopping venues are located nearby.
The Vault at Statesboro
Located within an Opportunity Zone, The Vault at Statesboro sits at 1699 Statesboro Place Circle. Previously known as Campus Evolution Villages and The Pointe at Southern, the three-story community was completed in 1999. Managed by Cardinal Group Management, the asset last changed hands in 2017, when FM Capital acquired the 11 buildings from Campus Evolution Villages, for $11 million.
The garden-style property offers four-bedroom apartments. Community amenities include a clubhouse with lounge area, a fitness center, a business center, study rooms, a pool, sports courts and game rooms. The 25,000-seat Allen E. Paulson football stadium and the MC Anderson Sports Complex are located within 2 miles west of the asset.
As most Millennials have exited college and are aging into their 30s, the student housing sector will be impacted by declining enrollment growth. This is largely due to Gen Z being a smaller age group, as well as the lasting effects of the pandemic-induced economic downturn.
Growth in student housing population will still occur, but at a slower rate, Dave Borsos, National Multifamily Housing Council vice president of capital markets and student housing, recently told Multi-Housing News. In fact, two new NMHC reports forecast an average annual increase of 1.1 percent in enlistment for university- and college-level education.