Situated on 25 acres at 3645 Wellborn Rd., the four-year-old asset, with 972 beds, was sold by Campus Lodge Apartments of Bryan LP in Chicago. Lance Wright, regional manager for GE Real Estate's Southwest region, says 94%-leased Reveille Ranch was the seller's sole holding in Texas.
For the buyer, however, it's a different story. Jamespoint owns 1,784 units in the area. "If you're going to make a loan in College Station," Wright says, "these are the guys to make it to." The 78% loan-to-cost package has a three-year term and 6% fixed-rate interest.
Wright tells GlobeSt.com that the new owner plans to boost the property's value by increasing occupancy and extending leases. "With the large amount of student housing they own, there are some great economies of scale there," he adds.
The 21-building complex has one-, two- and four-bedroom units. The units average 1,086 sf, with monthly rents averaging $1,238. Jay Wagley, managing director and Matt Mattox, vice president of CBRE|Melody in Dallas were the mortgage brokers.
Wright says GE Real Estate is interested in doing more student housing deals. "We're working on several deals in student housing across the country," he says. "We think that's a recession-proof area, especially when tied to a major university."
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