Hunt Real Estate Capital provided a first mortgage bridge loan in the amount of $9.034 million to finance the acquisition and renovation of a student housing portfolio located in Blacksburg, Virginia.
The borrower is Willow Creek. The proceeds from the loan will be used to acquire the property and fund a variety of interior and exterior improvements.
Carlton Scott Apartments and Stonegate Apartments represent a 196-bedroom garden-style student complex located on two non-contiguous parcels at 500 Broce Drive and 600 Appalachian Drive, respectively. The portfolio consists of 13 two- and three-story apartment buildings. The 92 units/196 bed unit mix is comprised of four one-bedroom/one-bathroom units at Stonegate, 16 two-bedroom/one-bathroom units at Carlton Scott, 36 two-bedroom/one-bathroom units at Stonegate, 20 two-bedroom/one-bathroom units at Stonegate, and 16 three-bedroom/1.5-bathroom units at Carlton Scott.
“Carlton Scott and Stonegate are located one mile northwest of Virginia Polytechnic Institute and State University and was constructed between 1960 to 1969,” noted Kevin Deegan, Director at Hunt Real Estate Capital. “The new owner plans to begin working on the exterior with capital improvements immediately after closing. The projected completion of most of the exterior work is targeted for May 2019. The Property is 100% leased for the 2018-2019 school year, and the sponsor plans to maintain occupancy through the 2019-2020 school year and beyond.”
Property amenities include laundry facilities, 24-hour maintenance, parking, and multiple Blacksburg bus stops providing easy access to campus.
“These experienced agency borrowers are repeat Hunt Real Estate Capital clients,” added Deegan. “We previously closed a $17 million bridge loan for Azalea Hill Apartments with the sponsor in mid-2018. We were pleased to partner with them on this deal.”