EdR Completes Mezz Loan, Enters Option to Purchase Penn State Asset

EdR invests in a Penn State development; HFF provides financing for three Texas assets; and Boston Capital invests in two affordable developments.

Cottage Rendering

University Park, Pa.—EdR has announced a $3 million mezzanine investment and an option-to-purchase agreement with Landmark Properties for The Retreat at State College, a 587-bed, cottage-style community to be built 1.2 miles from the Penn State campus.

“This option agreement is consistent with our strategy to acquire high-quality assets close to top-tier universities with growing enrollments,” says Randy Churchey, president and chief executive officer of EdR. “We are excited to work on our second cottage community with Landmark.”

The Retreat at State College will offer 138 two-, three-, four- and five-bedroom cottages situated on 24 acres on the bus transit route for the Penn State Campus. The new development gives Landmark more than 4,000 beds currently under construction and represents Landmark’s second 2013 delivery with EdR. Landmark, in a joint venture with Harrison Street Real Estate Capital, will be providing all the equity for the project. The asset is scheduled for a summer 2013 opening.

Community amenities will include a resort-style pool with raised hot tub, a large green space, sand volleyball court, bocce ball courts, and an outdoor fire pit and grilling area. A clubhouse will offer indoor basketball and racquet ball courts, a golf simulator, fitness center, group study area, computer lab, game room, community kitchen, and a spa suite with a sauna, tanning bed and domes, massage room and a manicure/pedicure station.

Pure Multi-Family REIT lands financing on three properties

Stoneleigh at Valley Ranch

Grand Prairie, Arlington & Irving, Texas—Holliday Fenoglio Fowler has arranged financing for three garden-style multifamily communities totaling 600 units in Grand Prairie, Arlington and Irving, Texas. The mortgage bank worked on behalf of Pure Multi-Family REIT to secure three separate fixed-rate loans through Freddie Mac’s CME Program.

The three properties include:

  • Windscape Apartment Homes — Grand Prairie, Texas. This 154-unit asset was 100 percent occupied at the time of transaction.
  • Oakchase Apartment Homes — Arlington, Texas. This 236-unit asset was 98 percent leased at the time of transaction.
  • Stoneleigh at Valley Ranch — Irving, Texas. This 210-unit asset was 95 percent leased at the time of transaction.

Boston Capital invests in two affordable communities in New York

Gloversville & Valatie, N.Y.—Boston Capital has invested in the construction of Gloversville Housing, a 48-unit development for families, and Valatie Senior Housing, a 32-unit development for seniors. Both affordable projects will be built with tax credit equity from the Low Income Housing Tax Credit (LIHTC) program. The general partners are 3d Development Group with non-profit partners, Rivercrest Development Corp., and Kinderhook Development, with non-profit partners Fulton County Community Heritage Corp.

“Boston Capital’s commitment to the creation of high-quality, affordable apartment communities is the key to our success and Gloversville Housing and Valatie Senior Housing are examples of that commitment,” says Jack Manning, president and chief executive officer of Boston Capital.

The construction of these properties is expected to generate $7.6 million in local income and create approximately 120 jobs in the Gloversville and Valatie areas.