INSIDE THE DEAL: Jones Lang LaSalle Facilitates $19.3M Student Housing Sale for ING Real Estate
- Apr 14, 2009
By Keat Foong, Executive EditorRichmond, Va.—Here is one way to encourage sales in this market: Find properties with an assumable loan. Jones Lang LaSalle closed the sale of a pair of student housing buildings on the Virginia Commonwealth University (VCU) campus in Richmond, Va., for ING Real Estate. Kanye Anderson Real Estate Partners purchased the two properties, RAMZ Hall, located at 933 West Broad Street, and Capital Garage, located at 1301 West Broad Street, for a combined $19.3 million. “When these assets went out in the market last summer, the debt markets were challenging, to say the least,” said Alex Quintana, managing director at Jones Lang LaSalle. ING had purchased the two student housing properties in the early 2000s, and was now exiting the sector, says Quintana. However, given how difficult it is to obtain debt today, it certainly helped that the two properties carried “good debt” that were assumable, he says. “Fannie and Freddie are not aggressive on anything,” notes Quintana. “We would not have gotten this sales price” if the loans were not assumable. ING’s original goal was for a sales proceeds of $21 million to $22 million, not that far off from the final price of $19.3 million. “The close proximity of the two assets, along with a compelling collection of restaurants and retail in the mix made these properties extremely appealing. That, combined with the fact that both properties offered compelling, assumable debt was a key factor in attracting a wide variety of investors.” Quintana led the Jones Lang LaSalle multifamily investment sales team on the transaction, along with Managing Directors Jeff Morris and Jubeen Vaghefi, and Vice President Javier Rivera.VCU will continue to master lease Ramz Hall through the remainder of its lease term. Having the university continue that master lease for the remaining two years of the term was also key to the sale, according Quintana.