X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TYLER, TX-MHE Real Estate Inc. made its first foray into the Texas student housing market, acquiring the 204-Unit Cambridge at Tyler. The Marina del Rey, CA-based investment group has bought the complex from its developer, Asset Plus Cos. of Houston.

Allison Higgins, assistant vice president with George Smith Partners in Los Angeles, explains MHE liked that Cambridge at Tyler, situated at 3088 Old Omen Rd., is adjacent to the University of Texas at Tyler. “MHE is actively expanding its student housing portfolio and this one caught their eye because most of the land around this asset is tagged by the university for academic development,” she explains.

Higgins and George Smith Partners’ principal Steven Bram arranged a $22.3-million acquisition loan through Freddie Mac. MHE ended up with a five-year, permanent, non-recourse loan at Libor plus 2.90%.

The complex, completed in summer 2007, was open in time for the school year and had 100% occupancy throughout the academic year. Cambridge at Tyler has one-, two-, three and four-bedroom units. Monthly rents are $450 to $725 per bed.

Despite the first-year success, Bram tells GlobeSt.com that finding acquisition financing was a challenge. “The fact Tyler was a tertiary market was one issue lenders had,” he says, “and the school’s enrollment was less than 10,000 students.”

Higgins says Freddie Mac, though, was comfortable with the deal. What also was helpful is the university is switching to a four-year program, which is starting to spark demand for housing, she adds.

Higgins says MHE is looking for more student properties–and not just in Texas. “They’re actively increasing their student portfolio and are looking nationwide,” she says.

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.