Michigan Student Housing Portfolio Trades for $101.8M
- Feb 12, 2013
East Lansing, Mich.—Long Wharf Real Estate Partners has sold a portfolio of three student housing assets serving Michigan State University to Westpac Investments for $101.8 million. Holliday Fenoglio Fowler closed the sale and arranged acquisition financing to the tune of $85 million in a long-term, fixed-rate loan through a national CMBS lender. The 852-unit, 2,772-bed portfolio has an average occupancy of 96.1 percent as of the spring semester 2013.
The properties include:
- The Club at Chandler Crossing, a 210-unit/768-bed asset.
- The Village at Chandler Crossing, a 336-unit/1,068-bed asset.
- The Landings at Chandler Crossing, a 306-unit/936-bed asset.
The RADCO Companies buys a 144-unit Georgia asset
Decatur, Ga.—The RADCO Companies has purchased The Pavilion at Decatur, a 144-unit asset located near Emory University and Dekalb Medical Center in Decatur, Ga. The deal comes on the heels of an active November and December, in which the firm closed on seven other properties comprised of 983 units.
The group will spend $4.8 million to renovate all the units and build first class amenities on the property. The package will include a new, ground-up construction clubhouse, fitness center, pool and playground.
“One of RADCO’s strategies is to acquire multifamily properties below market that also have significant upside potential, and Pavilion is such a property,” says Norman Radow, president and CEO of The Radco Companies. “Our plan is to completely transform a previous blemish in the neighborhood into a clean, safe and upscale community. Our redevelopment plan coupled with the ongoing construction of the county park will have a profound effect on the quality of life for our residents and the overall community.”
Johnson Capital arranges $8.4M, five-year fixed-rate loan from bank
Everett, Wash.—Johnson Capital announces that Neal Churney and Dave Susank in Johnson Capital’s Phoenix office have arranged an $8.4 million loan secured by a 112-unit apartment complex in Everett, Wash.
The property, Hampton Court, was built in 1985 and consists of 28 separate buildings each containing four units. It provides residents with amenities that include: manicured, park-like grounds; basketball and tennis courts; wood-burning fireplaces; washers and dryers in units; and vaulted ceilings in second floor units. With easy access to the Interstate 5 Freeway, the project is close to a number of amenities including the Paine Field-Snohomish Airport, Walter E. Hall Golf Course, Everett Mall, and the Boeing Future of Flight Aviation Center & Museum.
The new loan was a cash-out refinance that was provided by a bank. It has a fixed interest rate in the mid three percent range for the five-year term. The transaction provided the borrowers an opportunity to refinance several existing loans under one loan.
Commenting on the challenges of this transaction, Churney says, “We were able to meet the challenges of this transaction, which were primarily to consolidate all the existing loans into one loan and to provide cash out to the borrower.”