TODAY’S DEALS: MCS Capital Acquires 1,720-Bed Student Housing Asset
A joint venture sells a student housing asset serving Virginia Tech; URS Capital Partners completes its first apartment acquisition in Florida; and Johnson Capital’s Denver office arranges a $6 million loan.
Blacksburg, Va.—MCS Capital Partners is the new owner of Terrace View Apartments, a 756-unit, 1720-bed student housing community serving Virginia Tech in Blacksburg, Va. The asset was sold by a joint venture between Iconic Development and Wheelock Street Capital for $76.2 million. HFF marketed the property for sale. MCS Capital Partners summed an existing Fannie Mae loan in connection with the purchase.
The property is located within walking distance of campus. Terrace View was renovated in 2013 and is currently fully-leased. Amenities includes a renovated clubhouse and fitness center, swimming pool, hot tub with waterfall, tanning bed, game room, TV lounge, disc golf course, community garden, beach volley ball court, dog park, four basketball courts and 12 picnic and grill areas.
HFF team representing the seller was led by managing directors Brian Kelly and Troy Manson with support from Mike Higgins.
URS Capital Partners completes first buy in Florida
Jacksonville, Fla.—URS Capital Partners has entered the Florida market with the acquisition of South Point Place Apartments, a 108-unit asset located in Jacksonville. Plans are in place to enhance curb appeal and update unit interiors. The goal is to have the community as an affordable option for the entry-level and middle management employees of South Point Business Park, a local employment center.
“This is a true example of the type of deals we target at URS,” says managing partners Janet Silverman. “It’s an asset that is well placed in a market that’s growing in terms of both employment opportunities and population, but was under managed and in need of repositioning.”
The firm plans to acquire additional multi-housing property in 2014, and will focused on B and C assets with a value-add component in the $5 million to $15 million range.
Johnson Capital’s Denver office arranges $6M loan
Bismarck, 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’s. 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.”