The complex, which totals 495 beds and is being renamed The U onRiverbend, last sold in 2006 to a joint-venture group fromConnecticut for $14.5 million including a conduit loan for $12million. A downturn in operations pushed the property intoforeclosure, leaving CMBS bondholders with a distressed asset,according to CGI.

New York City-based Centerline Servicing Inc., a specialservicer, took control of the property and hired receiver JonesLang LaSalle, also based in Chicago, to stabilize the asset. JLLlisted the property with Chris Epp and Chris Bancroft fromAtlanta-based Apartment Realty Advisors' National Student HousingGroup.

"The assumable financing made this deal much more attractive toour group," says Alex O'Brien, CGI principal. He adds that thelower purchase price allowed it to leverage the property whilemaintaining a conservative debt coverage ratio.

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