X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOWLING GREEN, KY-BlueStone Real Estate Capital, a Philadelphia-based investment back, has provided a $17 million non-recourse, first mortgage loan for the Registry at Western Kentucky University. The property is a 145-unit, 558-bed student housing building across from the college.

Though construction started on the building in 2006, work on final items was just recently completed, says Tim Bradley, senior associate at BlueStone. He tells GlobeSt.com that the developer had some issues with cost overruns, and one of the investors, a private individual based in Orlando, stepped up and took over making sure the building was completed. “They had trouble leasing it up the first school year,” Bradley says. “It wasn’t the final product, and if a student housing place doesn’t have the best reputation, which this at that time did not, you’re going to have trouble leasing it up.”

In 2007, the building was only 60% leased, with work still going on, he says. However, the property is pretty much complete. “They literally just got the electric gates to work for the parking,” Bradley says. “There’s some little things that need to be completed, including the leasing of 17,000 sf of retail at the property. However, this should be leased up well this school year, as it’s right across from the university, and is the only off-campus housing that athletes can rent at and get reimbursed by the college. The university campus student housing is pretty much full.”

The loan-to-value was not allowed to exceed 78%, he says. “We’re estimating a future value of $21 million,” Bradley says. The investor achieved a two-year term on the loan, with three one-year extension options. “He’s a private equity guy, he wants to sell in three to five years,” he says. The property will be managed by Texas-based Asset Campus Housing.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.