Vesper Holdings Buys Texas Student Housing Asset
- Apr 11, 2012
Huntsville, Texas—Vesper Holdings has acquired Aberdeen Place, a 528-bed student housing community serving Sam Houston State University. The asset is comprised of 11 three-story residential buildings and a clubhouse. The 2007-built property features four-bedroom/four-bathroom units that are 1,333 square feet in size.
“Our acquisition of Aberdeen Place is part of a strategy to purchase well-located Class A student properties with superior risk-adjusted returns,” says Isaac Sitt, co-founder and principal of Vesper Holdings. “Since we were able to acquire this asset at a substantial discount, we are in a position to invest necessary capital and offer this market-leading property at competitive rental rates.”
Amenities at the property include shuttle service to campus, a clubhouse, 24-hour fitness center, a swimming pool, poolside theater, sand volleyball court, computer lab, tanning dome, and a game room with pool table, plasma television and gaming station.
UIP, Infinity Complete $26M Purchase
Washington, D.C.—A partnership involving Washington, D.C.-based Urban Investment Partners and New York-based Infinity Real Estate has completed the acquisition of 1841 Columbia Rd., NW. The 114-unit asset is located in D.C.’s Adams Morgan neighborhood.
The property, formerly known as The Alcazar, was sold for $26 million by Fairfield Residential Company. Urban Investment Partners and Infinity Real Estate are looking to make a value-add play by investing more than $7 million into a comprehensive building renovation and modernization program.
Beech Street provides $5.2M FHA loan with possibly lowest rate to lock in field office
Dothan, Ala.—Beech Street Capital LLC announced that it has provided a $5.16 million HUD 223(f) loan for the refinance of Camelot Apartments, a 150-unit market rate apartment complex in Dothan, Ala. The transaction was originated by Chad Thomas Hagwood, executive vice president based out of Beech Street’s Birmingham, Alabama office.
Beech Street secured a 35-year FHA-insured mortgage with a substantially lower interest rate for the borrower, William Butler, president and CEO of Engel Realty Company. “Beech Street was able to secure such a competitive rate that even in today’s low interest rate environment, HUD commented on its being the lowest rate to lock in the history of that HUD office,” states Hagwood. “The closing of Camelot Apartments demonstrates Beech Street’s partnership with the Birmingham, Ala. HUD Field Office considering the transaction was approved by HUD as submitted, and represents our growing momentum in the FHA sector.”
The repeat borrower was again impressed by Beech Street’s execution from start to finish. “Once again the Beech Street team, including Chad Hagwood, Tyler Griffin, Duncan Mendelsohn, Charles Craig and Linda Clark walked us through the HUD process efficiently and as quickly as possible,” comments Butler. “We had confidence and a strong comfort level as a result and the closing came off without a hitch.”
The fixed pricing on a 35-year term/amortization will allow the property to increase cash flow and sustain its marketability in the strong Dothan market. The transaction includes funds for immediate repairs and replacement reserves allowing the 1970s-built project to stay competitive throughout the loan’s 35 year term.
Acquired by the borrower in 2007, the property has undergone over $3,000 per unit in capital improvements in 2007 and 2008. The property, located on an over 10-acre site, is comprised of 12, two-story walk-up residential buildings, a leasing office building, a swimming pool, playground equipment, two tennis courts, a central laundry room and 275 surface parking spaces.
The fixed-rate loan has a 35-year term with a 35-year amortization schedule.