Memphis, Tenn. — Rael will build a 264-bed facility adjacent to the University of Memphis, where enrollment is 22,365.
Memphis, Tenn. — Robert Hervey, executive vice president and managing director of NorthMarq's Los Angeles regional office, has arranged $9.8 million in construction financing for student housing adjacent to the University of Memphis campus. The developer is Rael Investment Group. The facility will contain 73 units with 264 beds when completed.
According to NorthMarq, the last student housing project that was built in Memphis was not successful.
"The local lender believed in this project and knew the general contractor, which went a long way in getting this loan closed," Hervey says.
Financing was based on a 2-year construction loan followed by a 2-year mini perm with interest only during the construction period followed by a 25-year amortization during the mini perm. NorthMarq arranged this financing for the borrower through its relationship with a local bank.