Bemidji, Minn. — Gauntlet Private Investments has secured an $8.5 million loan for a student housing portfolio in Bemidji, near Bemidji State University.
The university has a student body size of approximately 5,000, which is lower than what is required for major student housing investors in the U.S. Additionally, the city has a population of 15,000, which, according to a release, is considered below tertiary standards for most major lenders.
The loan, which took nearly a year to complete, was further complicated by the inclusion of life settlement policies.
“No other investment banking firm in the country to my knowledge could have succeeded in getting this transaction done,” says Michael Clinton, founder of Gauntlet Private Investments. “With the closing of this deal, we are embarking on new territory, even for Gauntlet.”
The initial tranche of money may be the first of an add-on as the borrowers seek to expand their portfolio with the addition of more units and possibly commercial buildings. Gauntlet also secured an equity interest in the property, adding to its growing balance sheet.