FortGroup has started work on a 23.35-acre development site atWellborn and Old College roads, close to Texas A&M University.The Wave's Z Islander, slated for a summer 2009 completion, willhave two-, three- and four-bedroom units. FortGroup Developmentplans to manage the complex and hold it long term as it builds aWave's Z portfolio, according to Lee Weaver, vice president inTampa for Minneapolis-based NorthMarq Capital Inc.

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"They'd developed quite an extensive portfolio before and soldit all to Jones Lang LaSalle last year," says Weaver, who arranged$55.2 million in debt and equity financing for the project. He saysthe developer really wanted to work on a different brand.

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"Wave's Z is the concept they'll use at future sites and they'remainly in the Southeast," Weaver tells GlobeSt.com. He says thedeveloper is looking for other sites in Texas. FortGroup isunderway on a Wave's Z Islander in Jacksonville, FL, with 460 bedsin phase one and 228 beds in phase two on a 40.88-acre tract.

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Weaver says ideal sites for the Wave's Z concept are within onemile of large or expanding university campuses. "They also preferthat their projects be on a bus route," he adds. "Not a public busroute, but one run by the school so only students use it."

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According to a press release, a $43.82-million debt piece wasprovided by Regions Bank of Birmingham, AL. The 42-month loan isinterest-only for the construction period, with a 30-yearamortization during the mini-perm phase. The loan-to-cost ratio is80%; the interest rate is about 200 basis points over Libor. Anequity partner based in the South kicked in $11.42 million ofadditional equity, creating a total financing package that covers97% of the project's total cost.

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