Sponsor Reputation Helps Nail $20M Loan

TUSCALOOSA, AL-A sponsor’s good reputation, combined with the newness of a student housing asset, helped HFF close $19.6 million in refinancing on behalf of developer Ellis-Trick.  The loan is being used to pay off construction financing on the 162-unit, 308-bed Bluff at Waterworks Landing.

In an interview with GlobSt.com, HFF associate director Adam Herrin brought up some interesting facts about the loan itself, as well as the market in which the four-year-old student housing project is located. “It was a higher leverage request,” acknowledges Herrin, who placed the loan with Freddie Mac. “But given the reputation Ellis-Trick has in the market, and the newness of the property, we were able to achieve favorable terms.” He goes on to say that Freddie Mac offered the best leverage and interest rate – at 3.77% — than other lenders approached.