Phoenix — The availability of financing for student housing projects has been the subject of much discussion over the past several months, but according to TSB Capital Advisors Founder Tim Bradley, there is capital available for the right deal.
The company consulted on 15 deals during the third quarter, totaling nearly 3,700 units and more than 9,300 combined student housing beds. Deals ranged from joint venture partnership and construction financing, to senior permanent financing and a closed sale.
“It’s a testament to our industry-leading clients and our long-standing relationships in the student housing sector that we continue to close deals in the current environment,” says Bradley. “I’ve said from the start that the right deals with the right partners can still move forward — even during a pandemic. We’ve proven this over the last six months and reaffirmed the student housing space is as resilient as ever.”
The Phoenix-based company placed new construction financing for The Standard at Ann Arbor in Ann Arbor, Michigan; The Retreat on Milledge in Athens, Georgia; The Retreat East near Central Florida University; Hub IV Tucson near the University of Arizona; and Oliv Seattle near the University of Washington.
TSB Capital also placed permanent financing for Union Tempe, a 407-unit, 857-bed community near Arizona State University; Hub Minneapolis, a 426-unit, 707-bed property serving students attending the University of Minnesota; and Moontower, a 166-unit, 567-bed development located next to the University of Texas at Austin. The company also closed on the sale of The Dean in Champaign, Illinois, and acquisition financing for the buyer.
“We’re far from finished and anticipate a strong close to the end of the year,” says Bradley. “Candidly, it’s harder to get deals done, but we remain optimistic that moving forward student housing will continue to be one of the more attractive alternative investments within the real estate sector.”