On the Hunt for Student Housing in Iowa

Seeking to meet the growing demand for student housing in The Hawkeye State, a local company has purchased a 182-bed community located on the Iowa State University campus in the city of Ames.
South Meadow Apartments

South Meadow Apartments

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