TODAY’S DEALS: JV Lands Acquisition Financing for N.C. Student Asset
Pierce Education and Core Properties land acquisition financing through HFF; Behringer Harvard acquires a 312-unit community in Jacksonville; and McKinley obtains a $14.2 million bridge loan with Bank of America.
Greenville, N.C.—A joint venture between Pierce Education Properties and Core Properties has secured $19.8 million in financing for North Carolina Campus Crossing Phase II, a 276-unit, 816-bed student housing asset serving East Carolina University in Greenville, N.C. Holliday Fenoglio Fowler arranged the financing through Freddie Mac’s CME Program. Loan proceeds were used to acquire the property.
North Campus Crossing was completed in two phases during 2005 and 2006. Amenities include a zero-entry pool, fitness center, indoor volleyball court, double sand volleyball courts, basketball courts, tanning beds, a computer lab and a theater.
Pierce Education is a San Diego-based owner and manager of Class A purpose built student housing with a portfolio of approximately 4,500 beds. Core Properties is an Ohio-based real estate private equity firm with approximately $400 million of assets under management.
Berhinger Harvard buys Jacksonville community
Jacksonville, Fla.—Behringer Harvard has acquired Wimbery at Deerwood, a 312-unit multifamily asset located in Jacksonville, Fla. The property was acquired for the portfolio of Behringer Harvard Opportunity REIT II Inc. in a joint venture with ApexOne Investment Partners Inc., a Houston-based real estate investment firm.
“We believe that Wimberly at Deerwood is a well-leased asset that offers stable cash flow and attractive upside potential,” says Michael O’Hanlon, chief executive officer of Behringer Harvard’s Opportunity Platform. “Over the next few years, we intend to make incremental interior and exterior improvements that will further enhance the appeal of this popular community.”
Community amenities include a swimming pool, fitness center, business center, 60-seat theater room, sand volley ball and a basketball court. One of the reasons behind the acquisition is recent population growth in Jacksonville. The city has one of the largest military presences in the country and has a large transit hub with a deepwater port, four airports and three seaports.
McKinley obtains $14.16M bridge loan with Bank of America
Orlando—McKinley closed a $14,160,000 bridge loan with the Bank of America for RIVA Apartments, a 278 unit community located in Southwest Orlando. The property enjoys a superb location just a few blocks from Universal Studios Orlando and The Mall at Millenia. McKinley recently completed a major renovation of this community that it originally acquired as a fractured condominium, and it has now fully stabilized the asset as a rental apartment community.
“We truly value our relationship with Bank of America,” Albert M. Berriz, CEO of McKinley, says. “They have been a tremendous partner for us in our acquisition and bridge financing efforts.” McKinley is in the process of securing long term HUD financing through Berkadia Commercial Mortgage and that financing is expected to close later this year.
McKinley is actively involved in managing rental communities and condominiums throughout the State of Florida on its own behalf and for select clients. Florida is McKinley’s largest concentration of multifamily management with over 10,000 units under management throughout the state. McKinley has been actively involved in the investment and management of multifamily and commercial assets in Florida since 1982.