Harrisonburg, Va.—Institutional Property Advisors has brokered the sale of North 38, a 228-unit, 816-bed student housing community in Harrisonburg, Va. that caters to students at James Madison University. Wood Partners built the property, which was completed in 2009. The asset was 94.6 percent occupied at the time of transaction, with a sales price of $32,750,000, or $40,135 per bed.
Peter Katz, a senior director in IPA’s Phoenix office, and Henry Schuldinger, an associate in the Washington, D.C. office of Marcus & Millichap, represented the sellers, a joint venture between Wood Partners, Franklin Holdings and Key Bank, the equity source. Katz also represented the buyer, a joint venture of JMG Realty and Trident Partners.
“This purpose-built student housing complex was constructed to the highest standards, utilizing green technology that earned it an Energy Star certification,” says Katz. “Located in a submarket with high demand for quality student housing, North 38 offers the new ownership solid, unlevered returns over the short and long-term, coupled with layering in acquisition financing close to 80 percent LTV, this property will deliver strong double-digit leveraged returns as well.”
North 38 sits on 19-acres at 1190 Meridian Circle, and has units averaging 1,312 feet. There are 96 three-bedroom units and 132 four-bedroom units that are fully furnished and leased by the bedroom. Amenities include a resort-style pool, fitness room, tanning beds, spa, garden, game room with billiards, computer lounge, basketball courts, barbecue grills and a clubroom.
Cohen Financial arranges $4.3M bridge loan for fractured condos
Ft. Lauderdale, Fla.–Cohen Financial has secured a $4.3 million senior bridge loan for the acquisition of 62 unsold units in Village East. The Class A property, built in 2002, contains a total of 264 units with a mixture of townhomes and condominiums.
The property is located at 2119 SE 10th Avenue in Fort Lauderdale, just south of downtown off of 17th Street. The acquired units were approximately 91 percent occupied at time of acquisition.
Kevin M. O’Grady and Daniel R. Sheehan, both managing directors, and Eric McGlynn, senior analyst of Cohen Financial’s Miami Office, originated the financing with a special situation lender.
The business plan involves selling the units back into the market at reduced prices. As the property is almost fully occupied, the interim rental income will supplement much of the new owner’s carrying costs.
Saysr. O’Grady, “We have been actively providing financing for fractured condos since last year. After the passing of the Distressed Condominium Relief Act last July, we have seen robust growth in the volume of acquisitions, as well as in the number of lenders willing to finance them. Banks have also become more active sellers of distressed notes and REO which has further facilitated transactions clearing the market at appropriate discounts.”
Granbridge funds $75.8M N.Y. multifamily property
White Plains, N.Y.—Granbridge Real Estate Capital has closed a $75,829,900 first mortgage loan secured by Bank Street Commons, a 502-unit, Class ‘A’ high-rise multifamily property in White Plains, N.Y. Proceeds from the seven-year fixed rate transaction came shortly after the acquisition of the property by a pension fund advisor. The borrower’s equity injection, coupled with the property’s location and operating history, allowed both Granbridge and Fannie Mae to deliver a loan with full-term interest-only at aggressive pricing.
The sponsor chose the Granbridge Fannie Mae execution based on their competitive financing terms and ability to meet a tight closing deadline. Granbridge was able to coordinate with Fannie Mae’s Borrower Team to underwrite, approve and issue a commitment within two weeks of application.
Completed in 2004, the property consists of two towers (21 and 22 stories) comprised of one- and two-bedroom units. The two-bedroom units are connected by a common area and occupied by two tenants.