TODAY’S DEALS: Campus Advantage Buys 850-Bed Student Housing Asset in Georgia

HFF arranges the sale of a newly built student housing property; Federal Capital Partners provides $10 million for a high-rise student housing asset in North Carolina; and Johnson Capital arranges a $6 million takeout loan for a newly constructed property.

West 22 emailKennesaw, Ga.—Austin-based student housing firm Campus Advantage has acquired West 22, a 245-unit, 850-bed community serving Kennesaw State University. HFF arranged the sale on behalf of a joint venture between South City Partners and The Carlyle Group, and also put together acquisition financing for the buyer.

West 22 is located at 3615 Cherokee St., about 1.7 miles from campus. The 2013-built property has a mix of cottages, manor houses and luxury flats that average 1,356 square feet each. Amenities include a two-story fitness center, clubhouse, swimming pool, amphitheater, sports and recreation field, a half-mile running trail, sand volleyball court, basketball court, study rooms, Internet café, and shuttle service to and from campus. With a set of amenities like that, it is no surprise the property is 98 percent leased for the 2013/2014 academic year.

The sale price was not disclosed. M&T Bank provided acquisition financing with a 10-year, fixed-rate term.

Federal Capital Partners provides $10M to Raleigh JV development

Raleigh, N.C.—A high-rise student housing project in Raleigh, N.C., is one step closer to fruition now that Federal Capital Partners has agreed to provide $10 million to finance the development. The financing for Stanhope Center is comprised of an initial $2.7 million senior loan to finance the asset’s design, and has the flexibility to convert into a $10 million mezzanine loan when construction begins.

A joint venture between Kane Realty Corp. and Val Valentine is expected to begin construction on the Class A, 800+ bed property in the first quarter of 2014.

“We are excited to join Kane and Val Valentine in creating N.C. State’s premier mixed-use student housing facility at Stanhope Center,” says E.J. Corwin, senior vice president at Federal Capital Partners. “Its location adjacent to the N.C. State University Campus is second to none.”

Johnson Capital arranges $6M takeout loan for newly constructed property

BellcastleBismarck, N.D.—Johnson Capital announces that Scott Graber, senior vice president in the firm’s Denver office, has arranged a $6 million loan secured by an 82-unit multifamily property in Bismarck, N.D.

The property is a newly constructed market-rate apartment community named Bellcastle Apartments, which was completed in 2012. It is located at 1814 E. Capitol Road with easy access to Interstate 94. The project offers affordable one-bedroom, two-bedroom and three-bedroom floor plans with a host of features including full size washer/dryers walk-in closets with wardrobe organizer and secured entry systems. Each home comes with a one- or two-car garage complete with door opener.

The owner is a local operator and a repeat client of Graber. The debt, provided by a Johnson Capital Fannie Mae correspondent, is a permanent non-recourse Fannie Mae loan with a 10-year term and 30-year amortization schedule. The interest rate is in the low 5 percent range. The loan proceeds were used to retire two construction loans.

Commenting on the transaction, Graber says, “This loan request presented a small challenge due to the size of the Bismarck market. The borrower is a strong loan local operator with a good track record. Our correspondent Fannie Mae lender evaluated the risk characterization of the transaction differently than other Fannie lenders which enabled the borrower to move this property off of their construction loan with a fair amount of leverage. This refinance will free up some conventional borrowing capacity and allow our borrower to start on another project in their development pipeline.”

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