On the Hunt for Student Housing in Iowa
- Jul 06, 2015
Seeking to meet the growing demand for student housing in The Hawkeye State, a local real estate company has purchased a 182-bed community located on the Iowa State University campus in the city of Ames.
South Meadow Co-Op Inc. enlisted the help of Hunt Mortgage Group to provide the financing for the purchase of the community located at 321 S. 5th St. The New York City-based broker has provided a $6.4 million Fannie Mae loan for the acquisition of the seven-building South Meadow Apartments. According to a news release, the loan has a seven-year term that will amortize over three decades.
“ISU has an enrollment of nearly 30,000 and is considered a prime market for national and regional student housing among multifamily investors,” said in a statement for the press Josh Messier, vice president at Hunt Mortgage Group. “Enrollment has increased significantly in recent years and is currently at record levels.” According to Messier, the 182-unit community is 100 percent occupied and fully pre-leased for the 2015-2016 school year.
South Meadow Apartments is comprised of seven two- and three-story buildings featuring one-, two-, and three-bedroom apartments. The property includes amenities such as common laundry areas with coin-operated washers and dryers, 108 carports and 150 open parking spaces for students. Each of the seven buildings incorporates a courtyard with a picnic table and barbeque.
South Meadow Co-Op Inc. was backed by Daniel Joseph, Hagan Brown and David Raisner in the deal. The fact that the sponsors are long-term clients of Hunt Mortgage Group made for “an efficient underwriting and closing process in a volatile interest rate environment,” according to Messier.
Image courtesy of Shriver Rental Properties