San Antonio—Walker & Dunlop LLC has provided a $12,740,000 refinance of a construction loan secured by Aspen Heights in San Antonio near the University of Texas at San Antonio campus. The loan has a 10-year term and a 30-year amortization. It was underwritten to a 70 percent loan-to-value with a 1.30x debt-service coverage ratio. Breckenridge Group UTSA LLC was the borrower.
Aspen Heights is a cottage-style student housing community with 104 units built in 2010. Amenities include a 5,000-square-foot clubhouse with a movie theater, fitness center, tanning beds, game room, a computer lab and seating areas with flat screens. There is also an outdoor pool, tournament style volley ball courts, and a free private shuttle bus service. The property was 100 percent leased at closing.
Dolben Acquires 215-unit apartment community in Massachusetts for $19.1M
Revere, Mass.—The Dolben Company has bought Northgate Apartments in Revere, Mass., for $19.1 million. Northgate Apartments LLC will manage the 215-unit community. The acquisition increases Dolben’s portfolio to 47 properties, with around 11,000 total units under management.
“Northgate is an extremely well-located rental community, and represents an attractive value add opportunity for Dolben,” says Deane H. Dolben, president of The Dolben Company.
Northgate Apartments, constructed in 1974, sits on five acres next to a shopping center. An MBTA bus stop at the property offers routes to Boston, Logan International Airport and three subway stations. Outdoor amenities include picnic areas, a swimming pool with sundeck, and a playground. Some units have exposed brick; all have walk-in closets and track lighting. Size averages 778 square feet with rents of approximately $1,110 a month. Dolben plans to make substantial improvements, including kitchen renovations, boiler upgrades, roof replacements, common area painting, and new carpet.
Berkadia originates $13.4M for refinance of Wyoming student housing
Laramie, Wyo.—Berkadia Commercial Mortgage has originated $13,350,000 in permanent, fixed rate debt through a third party conduit for the refinance of Campus Habitat 15, a student housing property catering to the University of Wyoming. The loan has a five-year term and a 30-year amortization.
“Berkadia canvassed the market to obtain quotes from the active conduit lender that could meet the leverage required for the loan,” says Nick Cassino, SVP at Berkadia’s New York City office. “Our access to active conduit lenders enabled us to deliver the best structure and pricing available for our client.”
Campus Habitat is a 120-unit, 481-bed property that was built in 2002. Campus Habitat bought the property in 2008. It is the only Class A, purpose built student housing in the market, and is operating at 99 percent occupancy.
NorthMarq’s investment sales team arranges $30M sale of student housing
Kutztown, Pa.–NorthMarq’s Investment Sales team of Joe Verdejo and Jim Sheehan arranged the $30 million sale of an 184-unit, 552-bed student housing community adjacent to Kutztown University in Kutztown, Pa. The sale was completed in less than three months following significant investor interest. The seller and original developer was Apex at Kutztown LP, which built the facility in 2008; the buyer was Bruce E. Toll’s BET Investments.
In the student housing sector, universities continue to expand even in the face of the worst economy since the 1930s. “As a result, we are finding exceptionally strong demand for well-located student housing communities from buyers all across the country, ranging from institutions to private equity groups,” says Verdejo, senior vice president-Investment Sales. “For reasons specific to this deal the sales process was accelerated, and we went from launching the teaser to closing the transaction in less than 10 weeks.”
The state-of-the art community was built in 2008 and each unit features fully furnished individual bedroom suites, with private bathrooms and living rooms. The accessorized living theme continues with a clubhouse that includes a fitness center, fireside study lounge, tanning bed, pool table, hot tub, big-screen TV and outdoor BBQ patio with grill.
“This property is a real game changer for student housing in Kutztown, featuring a resort-like atmosphere, tremendous amenities, electronic security for each bedroom suite and high capacity internet and cable television services for each student,” says Sheehan, senior vice president-Investment Sales. “We are seeing a national trend towards providing this level of student living in almost every university campus in the nation.”