BLACKSBURG, VA-A joint venture between affiliates of Wheelock Street Capital and Iconic Development have acquired a student housing complex, Terrace View Apartments, at Virginia Tech. The terms of the deal were not published and Wheelock did not return a call from GlobeSt.com in time for publication. Nonetheless, a quick analysis of the transaction shows how important it is to Wheelock.  

For example, the deal is Wheelock’s first student housing acquisition as well as its first joint venture partnership with Iconic Development. The company has focused on other asset classes, most recently acquiring two hotels in California: the 245-room Courtyard San Diego Downtown and the 262-room Hyatt Westlake Plaza in Thousand Oaks. It has also placed a third Southern California hotel under contract and expects to close that acquisition this summer.

The acquisition of Terrace View Apartments was financed in part by Fannie Mae, with capital originated by NorthMarq Capital through its affiliation with AmeriSphere Multifamily Finance, LLC, a Fannie Mae-approved Delegated Underwriting and Servicing Lender. As with the multifamily space, the GSEs provided stability to this niche submarket during the recession. Now, capital is starting to return from private debt and equity sources.

Built between 1966 and 1979, Terrace View Apartments consists of 81 buildings. Amenities include a swimming pool, clubhouse, fitness center, playground and dog run. The JV partners plan to invest in major upgrades at the complex, which is a prime source of student housing for Virginia Tech, more formally known as the Virginia Polytechnic Institute and State University. Affiliates of the Stonemark Group, an Atlanta, GA-based company, was the seller. It was represented by Holliday Fenoglio Fowler and will continue to manage the property.