COLUMBIA, MO—Walker & Dunlop, Inc. recently originated a $27,500,000 acquisition loan from Fannie Mae for The Den, a new 158-unit student housing apartment complex located at the University of Missouri-Columbia. The class A development was finished last July by Gilbane Development, and quickly reached a 97% occupancy rate, which helped attract a host of prospective buyers, who have been quickly snapping up similar amenity-rich, luxury developments on many campuses across the nation. The Columbia Daily Tribune reported that Southampton, PA-based H. Katz Capital Group was the buyer.
“There was a lot of investor interest,” Will Baker, senior vice president and managing director of Walker & Dunlop, tells GlobeSt.com. “It was well-located and well-built and that's why it leased up so quickly and sold so quickly.” Furthermore, the university's recent decision to join the Southeastern Conference “certainly excited the students there,” and reinforced a positive enrollment trend.
The Bethesda, MD-based real estate finance firm has done three student housing deals in the Colombia region in just the past twelve months. As reported in GlobeSt.com, the company helped a joint venture between Lutz Real Estate Investments and Harrison Street Real Estate Capital acquire Campus View Apartments, a 656-bed community, from Campus Advantage. And it also helped Campus Advantage and Heitman LLC buy The Domain, a luxury development similar to The Den, for $22.5 million.
The Den sits less than two miles from the main campus and offers a mix of two-bedroom and four-bedroom units with fully-furnished living rooms and kitchens, a sand volleyball court, 24-hour computer center, hardwood floors, and a resort-style pool.
Baker adds that the company's experience as a Fannie Mae DUS student housing lender helped it get The Den's buyer a 10-year loan with only five years of interest. Fannie Mae also “really liked the whole story,” including the property's management firm and the borrower's deep experience in the sector. “We were able to get them to stretch a little more.”
Austin, TX-based Four Point Student Housing Investments brokered the sale.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.