Philadelphia—University of Pennsylvania and Drexel University students will have a new option for housing come the 2014/2015 academic year thanks to a joint venture development between Brandywine Realty Trust, Campus Crest Communities and Harrison Street Real Estate Capital. The project is a 33-story, 850-bed tower known as The Grove at Cira Centre South. It will rise in Brandywine’s Cira South development at 30th and Chestnut Streets on a site leased from the University of Pennsylvania.
The project will have a total cost of $158.5 million and will be financed by a $97.8 million loan provided by PNC Bank (as administrative agent) and Capital One (as syndication agent). Brandywine and Campus Crest will each own 30 percent of the joint venture, while HSRE will own 40 percent. As part of the agreement Campus Crest will act as property manager.
“We look forward to further expanding our successful Cira Centre development and shaping the Philadelphia skyline with our new partners,” says Gerard H. Sweeney, president and chief executive officer of Brandywine. “We recognized the strong demand for graduate and undergraduate student housing in University City and selected Campus Crest for its proven operating platform and track record of success. Additionally, Harrison Street’s astute investment experience and national market perspective further ensures excellent execution and a successful investment result.”
Construction has already begun on the tower, which in typical Campus Crest fashion, will host a set of luxury amenities similar to that of a hotel. There will be a roof top swimming pool, media lounge and 24-hour fitness center. Students will also have access to coffee service, a library technology center and first floor retail. The tower was designed by architect Erdy McHenry in consultation with Cira master plan architect Cesar Pelli. The project is expected to achieve LEED Gold certification.
“Brandywine is an established real estate owner, operator and developer with a rich history of success, and we are proud they selected us as a partner for this very prestigious project in the dynamic University City submarket of Philadelphia, Pennsylvania. The transaction also gives us an entry into a more urban product while managing our risk,” says Ted W. Rollins, chief executive officer of Campus Crest.
HFF arranges $72M for Hoboken asset
Hoboken, N.J.—Holliday Fenoglio Fowler has arranged a $72 million refinancing for The Vanguard, a 196-unit luxury multifamily community with 37,818 square feet of ground floor retail in Hoboken. The 10-year, fixed-rate loan was placed on behalf of Ironstate Development with a life company correspondent lender. Proceeds are refinancing an existing loan on the property.
The fully leased property is located in the Shipyard mixed-use development along the Hudson River across from Midtown Manhattan. The asset provides a shuttle bus to/from the PATH station. There is also on-site ferry service to both Midtown and Downtown Manhattan.
Ironstate has developed 10,000 residential and hotel units over the past several decades, and is currently involved in the development of approximately $1 billion in large-scale residential and hospitality projects.
Centerline provides $43.1M in acquisition financing
Houston—Centerline Capital Group has provided a $43.1 million Freddie Mac loan to facilitate the acquisition of Villas at Bunker Hill, a 398-unit garden-style asset in Houston. The 2006-built property will see a minor value-add play with improvements made on the clubhouse, fitness center and parking garage.
“This is the fifth transaction Centerline has closed with this borrower, a real estate investor with solid real estate experience,” says James Kelly, vice president, mortgage banking at Centerline. “Villas at Bunker Hill is located in a market with solid real estate fundamentals and strong occupancy rates. These demographic factors, along with the strong sponsorship, made this an attractive deal for Centerline.”
Property amenities include a 615-space parking garage, three elevators, a clubhouse with Wi-Fi, pool with fountains, lap pool with pool bench and Wi-Fi, barbecue area, multiple sun decks, courtyard areas with gardens and fountains, fitness room, activity room and Internet café.