CBRE Arranges $27M Financing for Student Housing Portfolio
- Jun 14, 2021
Cardinal Group Investments, in a joint venture with TPG Real Estate Partners, has landed $26.9 million in financing for the acquisition of The Element Communities in Eugene, Ore. The loan for the 383-bed student community was originated by CBRE.
The seven-year credit with a 2.61 percent floating rate is an addition to the borrower’s existing structured credit facility with CBRE’s Fannie Mae Delegated Underwriting and Servicing program and CBRE Multifamily Capital. The financing features full-term, interest-only payments and a flexible prepayment structure.
CBRE Executive Vice President Benjamin Roelke and Ian Walker handled the transaction.
The Element Communities comprises four student housing properties—The Anthony, The Pearl, The Sonja, and Westgate—with a total of 186 units. Built between 2010 and 2012, the community is within walking distance of the University of Oregon campus, and close to shopping, dining and entertainment venues in downtown Eugene.
This past year, student housing was one of the most enduring sectors in real estate, according to Alex O’Brien, CEO of Cardinal Group. In a recent interview with Multi-Housing News, he revealed that the businesses that proved to be more resilient were those that had prepared for a crisis well in advance. Additionally, the quick transition from in-person tours to virtual leasing tours and virtual leasing agents has helped many companies in the sector stay on top of their game.