Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BRYAN, TX-FortGroup Development has broken ground on the 852-bed Wave’s Z Islander, one of two in the US now under construction. The St. Augustine, FL-based veteran developer is launching a new student-housing brand after selling a portfolio last year.

FortGroup has started work on a 23.35-acre development site at Wellborn and Old College roads, close to Texas A&M University. The Wave’s Z Islander, slated for a summer 2009 completion, will have two-, three- and four-bedroom units. FortGroup Development plans to manage the complex and hold it long term as it builds a Wave’s Z portfolio, according to Lee Weaver, vice president in Tampa for Minneapolis-based NorthMarq Capital Inc.

“They’d developed quite an extensive portfolio before and sold it all to Jones Lang LaSalle last year,” says Weaver, who arranged $55.2 million in debt and equity financing for the project. He says the developer really wanted to work on a different brand.

“Wave’s Z is the concept they’ll use at future sites and they’re mainly in the Southeast,” Weaver tells GlobeSt.com. He says the developer is looking for other sites in Texas. FortGroup is underway on a Wave’s Z Islander in Jacksonville, FL, with 460 beds in phase one and 228 beds in phase two on a 40.88-acre tract.

Weaver says ideal sites for the Wave’s Z concept are within one mile of large or expanding university campuses. “They also prefer that their projects be on a bus route,” he adds. “Not a public bus route, but one run by the school so only students use it.”

According to a press release, a $43.82-million debt piece was provided by Regions Bank of Birmingham, AL. The 42-month loan is interest-only for the construction period, with a 30-year amortization during the mini-perm phase. The loan-to-cost ratio is 80%; the interest rate is about 200 basis points over Libor. An equity partner based in the South kicked in $11.42 million of additional equity, creating a total financing package that covers 97% of the project’s total cost.

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?


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

Get More Information


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.