Student Housing

Despite the ongoing struggles faced by the student housing sector, lenders are still active, according to a recent survey by Student Housing Business. The coronavirus 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 of REBusinessOnline, conducted a survey of industry professionals over the course of several weeks in May. The survey was segmented 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, 19 defined their company’s role in the industry as that of a lender, debt capital source, mortgage banker or broker. In this segment of the industry, 15 percent of companies laid off or furloughed employees at the corporate level and 8 percent instituted pay cuts. When asked whether their companies are still financing, lending or facilitating any investment and development transactions, 77 percent indicated yes. Forty-six percent of respondents noted that they are currently most inclined to lend on investment deals with 38 percent noting they are equally interested in both development and …

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In June, Student Housing Business, sister publication to REBusinessOnline, reached out to Timothy Bradley, founder of TSB Capital Advisors, for an update on the market for financing in the student housing sector and the outlook for the year ahead. SHB: How would you describe the market for financing student housing at present? Tim Bradley: The market is challenging but not impossible for the right deal with strong sponsorship. For cash-flowing student housing assets, there is still an element of “wait and see until fall” for refinancings and acquisitions in the debt markets. We are still receiving quotes from agencies on student housing transactions, but they include conditions such as heads in beds, school starting and upfront interest reserves. It’s also important to note that agencies are focused on best-in-class owners and operators and sound real estate at this time. All-in rates are still in the low- to mid-3 percent range for fixed-rate quotes. National banks are being very selective on new originations for existing clients and we have found regional banks to be more active in the current market. Life companies are mostly on the sidelines for student housing until the fall semester plays out. For construction, we’ve been able to secure …

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The coronavirus (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 (SHB) conducted a survey of industry professionals over the course of several weeks in May. The survey was segmented 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, 79 defined their role in the industry as that of an on-campus housing officer or operator. In this segment of the industry, 38 percent of institutions laid off or furloughed employees and 24 percent instituted pay cuts. Sixty-four percent of respondents noted that they are involved with traditional on-campus residence halls; 10 percent are involved with public-private partnership development; and 26 percent work with both types of residence halls.  Of those polled, 88 percent of universities saw residents leave behind clothing and belongings when they moved out in March following evacuation orders due to the pandemic, and 67 percent had not begun the process of turning on-campus housing rooms yet.  Looking toward the summer, 60 percent of respondents …

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By Katie Sloan, Associate Editor of Student Housing Business The coronavirus 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 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, 27 defined their company’s role in the industry as that of an investment sales broker. In this segment of the industry, 15 percent of companies let go of or furloughed employees at the corporate level and 30 percent instituted pay cuts. Are investment transactions still happening during the pandemic? The response is mixed, with half of the investment sales brokers polled during SHB’s survey indicating yes and half indicating no. Of those who responded yes, 70 percent are deals that are being re-traded. When asked what kinds of buyers and sellers are still active, the response was predominantly 1031 exchange buyers and sellers and opportunistic buyers looking for dramatic …

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Element-at-University-Park-Bryan-Texas

BRYAN, TEXAS — Miami-based One Real Estate Investment has purchased The Element at University Park, a 312-bed student housing property in Bryan. The community is located about three miles from Texas A&M University and was 97 percent occupied at the time of sale. Built in phases in 2000 and 2008, Element at University Park features one- and two-bedroom units and amenities such as a pool, fitness center, business center, tennis courts and a dog park. Ryan Lang, Brandon Buell, Jack Brett, Brad Shaffer and Brandon Miller of Newmark Knight Frank (NKF) represented the seller, Massachusetts-based Aspen Square Management, and procured One Real Estate as the buyer.

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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 …

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VIVA5750-San-Diego-CA

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.

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Chad Hagwood Hunt Real Estate

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 …

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The-Point-North-Austin

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.

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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 …

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