Hunt Real Estate Capital provided a Fannie Mae multifamily loan in the amount of $15.5 million to refinance a student housing property located in Big Rapids, Michigan.
Campus Creek Cottages is a purpose-built, rent-by-the-bed student housing property containing 92 units with four bedrooms each (368 beds total), all housed within 46, two-story garden-style apartment buildings. Phase I of the property consists of 66 units and opened in April 2017, while Phase II consists of 26 units and will open in August 2019.
The borrower, GFJ BR Cottages, LLC, developed the property and is backed by key principals, Steen Grundahl and Alan Johns. The mortgage banker on the deal was Ben Greemann, of Grand Rapids-based Greemann Capital.
“Campus Creek Cottages is located near Ferris State University and is fully occupied by students,” noted Dan Eibler, Director at Hunt Real Estate Capital. “The property is 100% occupied and leased-up quickly, spurring the planned future phase. In addition, the property is already significantly preleased for the 2019-2020 school year. This property is certainly in high demand.”
Tenants at the property share on-site amenities with the sponsor-controlled Campus Creek Townhomes property located across the street. Campus Creek Townhomes is undergoing renovations to provide new amenities including a dog park, outdoor lounge, and a tennis court.
“The borrower is a local property owner with deep experience in the market,” added Eibler. “They are also repeat Hunt Real Estate Capital borrowers. We were pleased to partner with this experienced local borrower offering high-quality student housing.”
Big Rapids, Michigan is a tertiary market in Central Michigan and its main economic driver is Ferris State University.