NEWTOWN SQUARE, PA-Locally based GMH Communities Trust places fixed-rate debt aggregating $72 million on two student-housing properties located in California and Florida. The specialty REIT places approximately $42.1 million of fixed-rate debt on the Grandmarc at University Village, a 760-bed, garden-style property located in Riverside, CA that serves the University of California.
The new 10-year loan carries a fixed interest rate of 5.5% and replaces a floating rate loan on the property. College Park Communities, GMH's student housing division, acquired the facility in November 2004, shortly after GMH completed its public offering.
GMH also placed a mortgage of approximately $29.9 million on Pegasus Connection, a 930-bed garden-style complex it acquired in late October 2005, which serves the University of Central Florida in Orlando. The mortgage is for a five-year term at a fixed rate of 5.22%. Proceeds from this loan will be used to repay outstanding borrowings under the company's revolving credit facility.
GMH focuses on two areas of specialty housing: college and university students residing off campus and members of the US military and their families residing on or near bases throughout the US. It also provides property management services to third-party owners, including colleges, universities and private owners of student-housing properties.
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