NC Student Housing Obtains Refinancing
- May 10, 2016
Wilmington, N.C.—The Lofts at Randall, a student housing property in Wilmington, N.C., has obtained cash-out refinancing. The building, which serves students attending the University of North Carolina at Wilmington (UNCW), includes 54 units and 216 beds.
The borrowers had existing construction debt of $7.8 million, according to Capstone Capital, which facilitated the deal. One option for ownership was selling the property, but instead they opted to pursue a cash-out refinance option, as the monetary benefits were more substantial, Capstone explained.
The borrower chose Fannie Mae debt. The GSE delivered a loan amount of $10.5 million, which generated about $2.5 million of cash back. The borrower qualified for an interest-only period of one year, followed by a 30-year amortization for the remaining 10- year term.
UNCW, which is part of the University of North Carolina System, has an enrollment of more than 14,000 graduate and undergraduate students. The school has seen considerable growth in recent years, with its most recent class, numbering about 2,300, the largest ever to receive degrees.
Capstone has closed more than 120 commercial loans for more than $1 billion in loan volume since 2007. The company has offices in Nashville, Tenn. and Fayetteville, N.C. and specializes in loans in the Southeast.