Student Housing

Student Housing Survey: Development Remains Underway Despite Slowdowns Due to COVID-19

by Alex Tostado June 4, 2020

The COVID-19 pandemic has had a major impact on all aspects of on- and off-campus student housing. In an attempt to better assess that impact and the sector’s outlook for the future, Student Housing Business, sister publication to REBusinessOnline, conducted a survey of industry professionals over the course of several weeks in May. The survey was separated by industry function for specific elements of the business, allowing SHB to better understand the pandemic’s distinct influence on each segment of the industry. Of the survey’s 569 respondents, 39 defined their company’s role in the industry as that of a developer or contractor. In this segment of the industry, 17 percent of companies let go of or furloughed employees at the corporate level and instituted pay cuts. Student housing development has continued to move forward throughout the pandemic, with 83 percent of respondents indicating that construction is still continuing on their projects. Of those with projects still underway, 63 percent indicated that they had faced slowdowns due to COVID-19. When asked if any of the companies’ development projects had been halted, 53 percent of respondents indicated that they had not. Of the 37 percent that have had a project halted, most indicated that construction …

June 4, 2020

California Development Loans Multifamily Student Housing Western

Capstone Development Closes on Financing for $23.5M Student Housing Project at San Diego State University

by Amy Works June 2, 2020

SAN DIEGO — Capstone Development Partners has closed on traditional debt and equity financing for the development of VIVA 5750, a new on-campus student housing community at San Diego State University in San Diego. Situated on ground leased by Capstone, the four-story, 80,000-square-foot community will house approximately 182 students in a mix of apartment-style units. Additionally, the project will feature indoor and outdoor amenities. Construction of the $23.5 million project commenced in May, with completion slated for the fall 2021 semester. Capstone, JWDA Architects and Cannon Constructors collaborated with the San Diego State University Research Foundation’s project stakeholders to design the new apartment property to meet the university’s goals and objectives relative to upper-division and graduate student housing options. VIVA 5750 is Capstone’s second P3 partnership with the San Diego States University Research Foundation.

June 2, 2020

Alabama Features Loans Multifamily Seniors Housing Southeast Southeast Feature Archive Student Housing

Three Months of Forbearance? Better Think Twice

by John Nelson May 26, 2020

By Chad Thomas Hagwood, Hunt Real Estate Capital Thanks to the Federal Housing Finance Agency (FHFA), forbearance is now one of the biggest buzzwords in multifamily finance. When the FHFA announced at the end of March that Fannie Mae and Freddie Mac would offer mortgage forbearance to multifamily properties facing hardship as a result of COVID-19, many multifamily owners adopted a wait-and-see attitude. That was the right decision. As April went on, the NMHC Rent Payment Tracker steadily trended higher. By May 13, full or partial rent for the month of May was 87.7 percent collected. But with unemployment spiking to record levels, rent collections through the spring and into the summer will most certainly decline at many properties, causing owners to give those forbearance offers a second look. My advice: if there is anything owners can do to avoid forbearance, they should. While tempting, mortgage forbearance should be considered a last resort. Forbearance could take a reputational toll It’s generally implied that entering into a forbearance agreement will not impact a borrower’s ability to secure financing in the future. In an age that obsessively collects and retrieves data of all sorts, experience — and common sense — suggests that …

May 26, 2020

Development Multifamily Student Housing Texas

Focal Point Development to Build 76-Bed Student Housing Property Near UT Austin

by Taylor Williams May 21, 2020

AUSTIN, TEXAS — California-based Focal Point Development will build The Point North, a 76-bed student housing community that will be located one block north of the University of Texas at Austin. The property is expected to be complete in summer 2021 and will feature an amenity courtyard, fitness studio and two study lounges. Craig Miller of FourPoint Capital Markets arranged an undisclosed amount of construction financing for the project.

May 21, 2020

Civic Development Healthcare Multifamily Student Housing Texas

Medistar, Texas A&M Release Name, Updated Plans for $401M Houston Campus

by Taylor Williams May 19, 2020

HOUSTON — A public-private partnership between Houston-based developer Medistar Corp. and Texas A&M University has branded its new, $401 million medical and engineering campus in Houston and released updated plans for the ensuing phases of construction. The new campus, which is situated on five acres at the intersection of Holcombe Boulevard and Main Street near the Texas Medical Center, will be known as the Texas A&M Innovation Plaza at the Texas Medical Center. New construction plans include the development of Life Tower, a 714-bed student housing building, and Horizon Tower, a 485,000-square-foot medical and academic building. The 17-story Horizon Tower will be constructed atop a 2,700-space parking structure, will include most of the campus’s 15,000 square feet of retail space and is expected to be delivered by or before the first quarter of 2024. Life Tower, along with the parking garage, grade-level retail space and the central “open-air” plaza, is scheduled to be delivered in June 2022. The groundbreaking of this phase of the project is scheduled for late 2020. Development of the campus began earlier this year with the acquisition and renovation of Discovery Tower, an 18-story office building that now houses the university’s EnMed program, which provides students …

May 19, 2020

Loans Multifamily Student Housing Texas

Berkadia Provides $31.7M Freddie Mac Loan for Student Housing Property in College Station

by Taylor Williams May 18, 2020

COLLEGE STATION, TEXAS — Berkadia has provided $31.7 million in Freddie Mac permanent financing for The Junction at College Station, a student housing community located about five miles from Texas A&M University. The property consists of three-, four- and five-bedroom cottages and townhomes. Amenities include a pool, volleyball court, clubhouse, fitness center, business center and shuttle service to campus. Thomas Genetti of Berkadia arranged the 10-year loan on behalf of the undisclosed borrower.

May 18, 2020

Development Illinois Midwest Multifamily Student Housing

JDP Breaks Ground on 276-Bed Student Housing Project Near University of Illinois

by Kristin Harlow May 14, 2020

URBANA-CHAMPAIGN, ILL. — Jackson Dearborn Partners (JDP) has broken ground on ICON, a 276-bed student housing development located near the University of Illinois in Urbana-Champaign. The project is being developed in partnership with Sub4 Development and Green Street Realty. Amenities will include a fitness center, lobby and lounge area and a third-floor deck with an outdoor grilling area. The developers raised equity through CrowdStreet, an online investment platform. Alpha Capital CRE arranged a $19.9 million construction loan with Associated Bank. Alec Bliss of Associated Bank managed the loan and closing. ICON is slated to open for the 2021-22 academic year.

May 14, 2020

Features Student Housing

Outlook is Bright for Student Housing in Post-COVID-19 World, Says Developer

by Katie Sloan May 13, 2020

The student housing industry has been uniquely affected by the coronavirus (COVID-19) pandemic. The niche asset class has been proclaimed “recession-proof” since its inception, and COVID-19 has been the ultimate test. One after another, universities across the country shut down, transitioned to online classes and sent their students home. What we have found during this time is that college students do not go home just because class is cancelled. Across the nation, students are still living in their off-campus apartments and rent is still being collected. Additionally, students who were turned away from traditional university-owned residence halls are now seeking off-campus apartments. With today’s students valuing privacy, distance and cleanliness more than ever, we are seeing students who typically live in residence halls transition to off-campus apartments where they can have a private bedroom and bathroom. What does this mean? Student housing is truly recession-resilient. When every university in the country cancelled classes, privately owned student housing not only remained stable but it expanded its clientele. The unknowns regarding where the economy is headed in the immediate future will likely give a lot of investors pause, but I personally remain optimistic about the opportunities that will come out of this pandemic. A few …

May 13, 2020

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Grandbridge Arranges $35.4M Refinancing for 199-Unit Multifamily Community Near University of Minnesota

by Kristin Harlow May 7, 2020

MINNEAPOLIS — Grandbridge Real Estate Capital has arranged a $35.4 million refinancing for The Arrow Apartments, a 199-unit multifamily community located near the University of Minnesota in Minneapolis. Chris Perry, Brett Olson and Joe Lindberg of Grandbridge originated the permanent, fixed-rate loan, which was funded through an undisclosed credit union. The financing offers an initial period of interest-only payments with a five-year term and 30-year amortization schedule. The Arrow Apartments offers shared amenities including a fitness center, multiple study rooms, a printing center, rooftop deck and a 24-hour fitness center.

May 7, 2020

Loans Multifamily New York Northeast Student Housing

KeyBank Arranges $29.4M Loan for Refinancing of Student Housing Community Near University at Albany

by Alex Patton May 4, 2020

ALBANY, N.Y. — KeyBank Real Estate Capital has arranged a $29.4 million loan for the refinancing of Auden Albany Student Housing, a 322-bed community serving students attending the University at Albany in Upstate New York. The fixed-rate Fannie Mae loan is structured with a 12-year term and a 36-month interest-only period. The community features amenities including a fitness center, game room, yoga studio and clubhouse. Erik Storz and Pete Rand of KeyBank arranged the loan on behalf of the borrower, DMG Investments.

May 4, 2020

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