San Diego State Student Housing Refi'd for $56M Through AIG
- Jan 26, 2012
January 26, 2012
By Barbra Murray, Contributing Editor
Lenders continue to look favorably upon the multi-family market, and student housing is no exception. Acting on behalf of AIG Global Real Estate Investment Corp., real estate and capital markets services firm Holliday Fenoglio Fowler L.P. has obtained a $56 million loan for Sterling Collwood, a premier student-housing property near San Diego State University in San Diego.
Collwood sits on seven acres approximately one mile from the SDSU campus. The apartment community opened its doors in 2010, featuring 260 units in three buildings. M&T (FNMA) provided AIG with a seven-year loan carrying a 4.57 percent fixed-rate for the refinancing of a construction loan on the property.
The glory days of loans being handed out like candy are just a distant memory. Extreme caution is the key characteristic of the capital markets right now. However, the multi-family sector was the first to bring lenders off of the sidelines and it continues to be a favorite for financing. But while it’s not just any asset that can lock in a good loan, Sterling Collwood makes the grade.
It’s new, it’s 99 percent leased and the prospects for maintaining high occupancy for the near future get an A-plus. “Demand for off campus housing is about 15,000 units more than what the local area is currently providing, thus positioning Sterling Collwood for long-term success,” Zachary Koucos, associate director with HFF, said. And the property’s holding of a coveted designation is unlikely to hurt; Sterling Collwood is the first asset in San Diego to be certified LEED-Gold by the U.S. Green Building Council.
Nationally, the student housing sub-sector of multi-family remains strong, having held a position near the top of the class throughout the economic downturn. Demographics, like the continued upswing in enrollment, are good. “Generation Y, the progeny of the enormous Baby Boom cohort continues to swell the ranks of Americans aged 18 to 24 years, the sweet spot for full-time college enrollment,” according to a recent report by Red Capital Group, a multi-family debt and equity provider.