Bethlehem, Pa. —Firm expands Campus Hill brand to Lehigh, completes $30.8 million refinance of Syracuse portfolio.
Bethlehem, Pa. — Salmanson Capital, a New York-based real estate firm specializing in the acquisition and repositioning of student housing assets, recently acquired an off-campus student housing portfolio adjacent to Lehigh University in Bethlehem, Pa., for approximately $15.2 million.
The scattered-site portfolio purchased in an off-market transaction includes a mix of apartment buildings and townhouses totaling 108 units with 394 beds across 50 properties, all of which are close to campus. The 10-year CMBS fixed-rate loan with Citibank was arranged by Jason Krane of Ackman Ziff.
The acquisition brings Salmanson Capital’s total portfolio to 452 units and 1,336 beds in three university cities. The firm has holdings near Lehigh University, Syracuse University and the University of Nebraska-Lincoln.
The portfolio was acquired from a local owner and will be managed by the Salmanson Capital affiliate Campus Hill Management. The properties will be rebranded Campus Hill Apartments, the first expansion of the Campus Hill brand outside of Syracuse University. Salmanson Capital is planning a $2 million capital improvement plan to include kitchen and bathroom renovations of all units. Kitchens will feature stainless steel appliances, and baths will include high-end fixtures and finishes. The units will also receive new furniture and technology upgrades.
Salmanson Capital has also recently completed an approximately $30.8 million refinancing of its 232-apartment, 614-bed Syracuse University student housing portfolio. Rodney Shenman of KeyBank helped to arrange the 10-year fixed Freddie Mac loan. The portfolio, Campus Hill Apartments, was acquired in 2007 for $26 million. Since its acquisition, Salmanson Capital has enhanced its value through kitchen and bathroom renovations as well as technological and management upgrades and has acquired additional properties in the market bringing its total Syracuse portfolio to more than 700 beds.