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Calmwater Capital Originates $7.6 Million Loan for WSU Student Housing
Sponsor plans to upgrade property, adding amenities and nearly 40 beds
The credit facility comprises an approximately $5.6 million senior secured term loan and a more than $2 million delayed draw term loan for capital expenditures to increase the property's bed count to 223.
"The College Crest Apartments complex is situated in a prime location, just minutes from WSU's campus and neighboring a number of comparable off-campus housing options," said Eric Jordan, vice president of Calmwater Capital. "With WSU's enrollment of more than 20,000 students continuing to grow, the local demand for student housing will only increase. Considering this, along with Nelson Brothers' extensive track record with similar student housing projects, we are confident in the viability of this investment."
College Crest Apartments is a garden-style student housing community that houses 65,326 square feet of net rentable space. Built in the 1970s, the three-story property comprises a mix of two-, three- and four-bedroom units and has maintained a historical occupancy over 90 percent. The financing provided by Calmwater allows Nelson Brothers to add a leasing office and other amenities to the complex, including a community center and upgraded interiors.
"Student demands are constantly changing. Often, we see a lot of markets where supply has not kept up with the preferences of the new generation,"
The property's previous owners renovated six of its units, adding bedrooms with individual access for each. Nelson Brothers plans to continue these upgrades with the acquisition, converting an additional 39 three-bedroom units to four-bedroom units.
Nelson Brothers currently manages 35 properties nationwide, including 31 student housing projects at top colleges and universities. They have more than $550 million in total acquisitions to date. The firm's approximately 5,500-bed portfolio has average occupancy of more than 97 percent.
Highland Realty Capital, Inc. served as the broker for the transaction.
About Calmwater Capital:
Calmwater Capital is a leading, nationwide direct real estate lender that delivers certainty of execution, flexibility and speed to borrowers. Specializing in $5 million to $50 million senior and mezzanine bridge loans that fall outside the capabilities of traditional lenders, Calmwater has originated more than $1.6 billion in commercial real estate loans throughout the United States in the office, industrial, retail, multifamily, hospitality and special-use sectors. In 2017, Calmwater continues to diversify its investor base by raising capital from top endowments, pension fund, international family offices and other institutional investors.
For more information on sponsorship and investing opportunities, visit www.calmwatercapital.com.
About Nelson Brothers Professional Real Estate, LLC:
Nelson Brothers Professional Real Estate, LLC, offers individual investor direct ownership interests in institutional quality, professionally managed real estate. The company, founded in 2007 by brothers Patrick Nelson and Brian Nelson, focuses on targeted growth opportunities and value-added investments for its clients through capital improvements, cost efficiency, and revenue maximization. Its entities include Nelson Brothers Professional Real Estate LLC, Nelson Brothers Property Management Inc, and Nelson Brothers Construction Management LLC. Nelson Brothers Professional Real Estate specializes in the acquisition, financing and ownership of real estate investments in the niche areas of student housing and assisted living investments.
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