Philadelphia — The $6.9 million includes refinancing and acquisitions in Pennsylvania.
Philadelphia — Marcus & Millichap Capital Corporation (MMCC) has arranged two student housing portfolio loans totaling $6.9 million. John Banas and Kris Wood, directors in MMCC’s Philadelphia office, arranged the loans.
One loan was arranged to refinance the borrower’s 14-property student housing portfolio at the University of Pennsylvania. The other loan utilized the equity from the refinancing to fund the acquisition of a 10-property student housing portfolio at Temple University listed by Marcus & Millichap Real Estate Investment Services agents Ken Wellar and Cory Lonberger.
“We financed our client’s acquisition of the Temple University properties through the refinancing of his University of Pennsylvania properties,” Banas says. “Working with more than 20 properties spread over two universities with a borrower who is not a commercial real estate professional created a challenging scenario for lenders.”
“During the underwriting phase of the refinancing, the original lender declined to fund nine properties in the University of Pennsylvania portfolio that had fewer than five units,” adds Wood. “We brought in a second lender to refinance the smaller assets.”
“Student housing loans can be labor intensive, and financing a portfolio of multiple, small student housing properties and gaining the cash-out equity to acquire additional student housing was a complex undertaking,” Banas says.
The loans were structured with 10-year terms and amortize over 30 years at an interest rate of 4.12 percent. The LTV is 75 percent.