HFF Secures Financing for 194-Unit Student Housing Project
- Apr 15, 2013
Holliday Fenoglio Fowler L.P. recently announced it has arranged construction financing along with joint venture equity for the development of Metro Park East, a 194-unit student housing project at the University of Minnesota – Twin Cities in Minneapolis.
A $29.5 million construction loan through American Bank of Texas was secured on behalf of the developer, Fountain Residential Partners L.L.C. by HFF’s Adam Herrin. HFF also assisted in securing $11.6 million in joint venture equity with an institutional capital partner.
Located at 2635 SE Fourth St. in the Stadium Village neighborhood, the 551-bed Metro Park East is directly adjacent to the East Bank campus of the university. The project, which will be built to LEED Silver standards, will feature one-, two-, three- and four-bedroom apartment homes and is scheduled for completion and occupancy in the fall semester of 2014. The development will include a clubhouse featuring a bar-styled game room, a state-of-the-art fitness center and a cyber café with study rooms.
Signs are encouraging for the Twin Cities market overall. With more than 75,000 jobs generated since 2010 and another 49,300 new jobs expected this year, the Minneapolis-St. Paul market has seen a pent-up renter demand that is driving vacancies to low levels, according to a recent report released by Marcus & Millichap. Apartment availability is expected to get a boost in 2013, as developers will complete close to 2,800 rental units, of which more than 2,000 are slated for Minneapolis. According to the report, apartment operators are expected to face a stiff competition due to the spike in supply and increased home sales, including the first condo project to start since the beginning of the recession.
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Chart Courtesy of: Marcus & Millichap