Student Housing: Student Housing Project Gets $44M Construction Loan
NAI Bluestone Real Estate Capital has secured a $44 million construction loan for The District at ODU, a 909-bed, 307-unit student housing facility in Norfolk, VA.
The Philadelphia-based real estate investment-banking firm secured the loan on behalf of Norfolk Housing, LLC, an affiliate of a national real estate development company. The variable-rate bond backing the loan represents 65% of the stabilized project value. The initial interest rate is 4%, converting to a 10-year mortgage with a sub-7% fixed interest rate amortized over 30 years.
The 909-bed facility is located within walking distance of Old Dominion University, one of the nation’s fastest-growing universities. With the construction financing in place, development of the student-housing complex is underway and the project is scheduled for delivery in June 2010. Increased enrollment at the school has led to a housing deficit of between 2,500 and 5,000 bedrooms.
The upscale facility will serve both Old Dominion University and the nearby East Virginia Medical School. Units will be furnished and will include a washer/dryer, with single, double, triple and quadruple-bed options for students. Amenities include a pool, computer lab, fitness center and recreation area.
Securing any construction loan over $15 million without syndication is incredibly difficult in today’s market, said Tim Bradley, senior associate at NAI Bluestone Real Estate Capital.
“In this case, we were able to secure a loan nearly three times that size with favorable terms, and meet the proposed construction deadline to have [the project] completed for the fall 2010 semester,” Bradley said.
By Randyl Drummer for CoStar Group
