F inancial D igest F eaturing A ppraisal
Real Estate Journal — April 15 - 28, 2016 — 5A
www.marejournal.com
M id A tlantic
Including a $55.9 million Fannie Mae loan for a NY student housing complex Walker & Dunlop originates $617m of student housing loans in 2015
ETHESDA, MD — Walker & Dunlop, Inc. announced that it originated $617 million in loans backed by student hous- ing properties in 2015. With a growing percent- age of high school graduates choosing to pursue higher education, steady growth in college enrollment over the next several years is expected in the United States, which will drive the demand for student housing across the country. This expectation of increased demand combined with strong occupancy trends make student housing an at- tractive option for borrowers looking to deploy capital in the commercial real estate space. As a sub-sector of multifam- ily housing, student housing B ALEXANDRIA, VA — MAC Realty Advisors, LLC (MAC) , on behalf of Foulger- Pratt, has placed a $40 million joint venture equity invest- ment from a US-based private equity real estate fund and a $93.5 million construction loan from a national lender for the development of The Thornton, a new 439-unit apartment community in Al- exandria, VA. The transaction closed in February 2016. Located on South Wash- ington St., The Thornton is ideally situated in Old Town Alexandria near thousands of jobs and transit, and is surrounded by some of the best recreation resources in the region. The design of The Thornton will take advantage of this unique setting with one foot in nature and the other in Old Town. There will be a boardwalk that encircles the property, reinforcing the natural surroundings of the site, a pool overlooking the Cameron Run, an on-site kayak storage for residents, and residents will enjoy access to the adjacent Mount Vernon Trail, an 18-mile paved trail popular with cyclists, run- ners, and walkers.
financing requires specialized knowledge of the evolving market trends facing owners and operators of these proper- ties that cater to college-age residents with very specific demands. Walker & Dunlop’s presi- dent, Howard Smith said, “Walker &Dunlop has decades of experience financing stu- dent housing properties and in-depth knowledge of student housing markets throughout the country. This market is ever-changing to meet the increasing demand for off- campus student housing and it’s vital that borrowers are aware of the current trends in this sector. Walker & Dun- lop’s experienced originators understand the unique financ- ing requirements and options
available to borrowers in the student housing space, which allows our team to structure optimal financing to meet the needs of our borrowers.” Recent student housing fi- nancings byWalker &Dunlop: Collegetown Terrace Ithaca, New York •$55.9 million Fannie Mae loan for a student housing complex in close proximity to Cornell University •The borrower was able to complete development of the property using a one- year bridge loan provided by Walker & Dunlop’s Interim Loan Program •Walker & Dunlop subse- quently arranged permanent financing for the property in the form of a ten-year, fixed rate Fannie Mae loan
property features amenities like a bocce ball court, dog park, coffee shop, sports bar, and arcade that make the community very attractive to students in the area South Campus Apartments Madison, Wisconsin •$7.5 million, 6-year loan for a student housing apartment community located near the University of Wisconsin •Walker & Dunlop used its access to a wide variety of capital sources to obtain the optimal financing terms for the borrower through life insurance company, PPM Fi- nancial, which also financed the student housing property that is adjacent to South Cam- pus Apartments and owned by the same sponsor. n
Domain at Tempe Tempe, Arizona
•$48.8 million Fannie Mae acquisition loan for a dedicat- ed student housing property serving students at Arizona State University, the larg- est university in the United States •Student housing occupancy in the Tempe, Arizona sub- market averaged 98.3% at the time the loan was underwrit- ten, demonstrating the strong demand for student housing in this area Tetro Student Village San Antonio, Texas •$24.0 million Freddie Mac acquisition loan for a student housing development located 0.5 miles from the University of Texas at San Antonio •This newly-constructed
MAC places development financing for $137m Alexandria Apartments
Mission Capital arranges $16.5 million in bridge financing
Valley Square
The Thornton
the property and substantially leased many of the upgraded buildings. “Because Valley Square was acquired at such a low basis, the property has a competi- tive advantage, as it provides a value alternative for office tenants looking for space in the submarket,” Buchwald said. “The sponsor has successfully repositioned the property, re- sulting in great leasing veloc- ity and momentum.” Originally constructed in 1983, Valley Square is located in the heart of Pennsylvania’s Montgomery County, approxi- mately 20 minutes northwest of Philadelphia. The property provides easy access to the Pennsylvania Turnpike and other major thoroughfares. n
BLUE BELL, PA — Mis- sion Capital Advisors , a national real estate capital advisory firm, announced that its Debt & Equity Finance team arranged a $16.5 million bridge loan for Valley Square, a five-building, 289,194 s/f office complex located at 512 Town- ship Line Rd. in Blue Bell, PA. The Mission Capital team of Steven Buchwald and Lexington Henn arranged the loan on behalf of Contrar- ian Capital Management , a Connecticut-based investment firm (“Contrarian”). After acquiring the complex in 2013 for only $8.5 million, Contrarian and operating part- ner Corvest Realty Group implemented millions of dol- lars of capital improvements at
The Thornton will also fea- ture community amenities including concierge services, top of the line fitness center with yoga studio, business center, bicycle storage and repair center, kayak storage, library, resident clubroom, and pet washing facilities. “We are very excited to be under construction on the Thornton. We’ve had our eye on Alexandria for quite some time and are thrilled to now have a foothold in Historic Old Town. We feel that we have a wonderful location, with scenic views of the river and a short walk to all the amenities of old town. We are looking forward to delivering luxury apartments in the spring of 2018,” said Bryan Foulger ,
Vice president of development at Foulger-Pratt Compa- nies . “The opportunity to develop a high quality apartment community in one of the most sought-after submarkets with a leading experienced partner attracted multiple investors and lenders,” said Andrew McAllister , executive direc- tor at MAC. “The strong fun- damentals of the Alexandria market and limited availabil- ity of large scale sites make this transaction especially compelling,” added Bruce Levin , executive director at MAC. Bruce Levin, AndrewMcAl- lister, Warren Dahlstrom , and Caren Garfield led the placement effort for MAC. n
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