Cleveland — KeyBank Real Estate Capital has secured $66 million in debt financing on behalf of Pierce Education Properties for a five-property student housing apartment portfolio.
Totaling 2,788 beds, the properties are located in four states across the Midwest and Southeast. KeyBank originally funded five on-balance sheet, three-year, non-recourse loans to finance the acquisition of the five properties in 2014. KeyBank refinanced the original bank loans with 10-year, interest-only floating rate debt with a loan-to-value of 55 percent.
“With the balance sheet and the Fannie Mae Bulk Facility KeyBank provided, we can move quickly to close on acquisitions with sellers and have the certainty of execution for our investors,” says Fred Pierce, CEO of Pierce Education Properties. “This is a very valuable partnership for our firm.”
Robert Prouty and Andrew Lucca of KeyBank’s Commercial Mortgage Group arranged the financing.