When it is all said and done, 2012 will likely be recorded in industry annals as the year deals finally closed—unlike in 2010 and '11, when buyers and sellers would find one reason or another to hit the brakes on transactions. “We are in a unique period right now when both parties are inspired to get deals done,” says Kevin White, director of business development for Virtus Real Estate Capital. And financing? That is a nobrainer, he says, and indeed the Austin, TX-based real estate private equity sponsor is moving forward with its own transactions with an eye to locking in as much debt as possible. “That way, if we hit the wrong end of the cycle, we have enough term left on the loan to ride it through,” he says.

Fortunately for White, the securitization markets are happy to oblige. Earlier this year the company acquired a 264-unit, 1,056-bed student housing community near East Carolina University in Greenville, NC. It secured 10-year debt from Freddie Mac with a two-year IO term at a 4.16% interest rate.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2024 ALM Global, LLC. All Rights Reserved.