Harrisonburg, Va. — The private firm purchased the non-performing note on the property in October and is planning a $5 million renovation.
Harrisonburg, Va. — Vesper Holdings has acquired University Fields, a 1,152-bed student housing community approximately one-quarter of a mile from the James Madison University campus and across the street from the university’s newer athletic facility, University Park, which opened in 2012. Vesper, a private real estate investment firm based in New York City, purchased the non-performing note on University Fields on Oct. 28 for $19 million. The borrower had purchased the property for more than $30 million in 2003 and owed approximately $25 million at the time of the note purchase. Vesper says the acquisition is expected to generate net double-digit cash yields. The firm also says it will invest $5 million in capital expenditures to fully renovate University Fields. The community consists entirely of four-bedroom units that range in size from 1,100 to 1,200 square feet, which are housed in 22 three-story residential buildings spread across a 23.55-acre site. Vesper plans to add to its portfolio in the Mid-Atlantic region, it says.