Mitch Kiffe with Freddie Mac says this 10-year loan was a perfect fit for the lender's Student Housing program. "It's a different segment of the market, purpose-built student housing, apartment communities located typically on or near campus that are professionally owned and operated by a company that has a lot of experience. Lindsey has this experience of building and owning communities near major universities, mainly in the middle part of the country," Kiffe tells GlobeSt.com.
"For these deals, we take a close look at the university, the enrollment patterns and housing policy, whether the college requires students to live on or off campus, and the dormitory supply. We also want the properties we finance to be close to the university, and have good layouts and amenities, such as the technology connections, that parents will pay for, for their children," he says. The buildings have one- and two-bedroom floor plans, with furnished apartments available, and many amenities of a luxury multifamily facility. The units rent ranges from $535 to $795 per month.
He says Freddie Mac is still having a strong year buying mortgages, though the economy has had a big impact on business. "The apartment market is holding up reasonably well," Kiffe says. "We are seeing some trends that concern us, such as job losses that are putting pressure on occupancies and rents. We're forecasting, for the next 18 months, that most markets will have declining occupancies and flat to declining rents."
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