Berkadia completes sale and secures $100M in financing for student housing portfolio in Virginia
- MAREJ
- Aug 16, 2021
- 2 min read
Blacksburg, VA — Berkadia announced the sale of and financing secured for a three-property student housing portfolio in Blacksburg. The properties in this portfolio included Hunters Ridge, Maple Ridge Townhomes and Collegiate Suites of Blacksburg. senior director David Hudgins of Berkadia Newport News completed the sale on behalf of the seller and the buyer. The buyer was California-based Reliant Group.
Managing director John Richards of Berkadia Richmond secured the $100.2 million in financing for the acquisition of this property on behalf of the buyer. The five-year Pacific Life Insurance loan included full-term interest-only, a 30-year amortization schedule and a 2.66 percent interest rate.
“This deal was challenging on so many fronts as uncertainty from the pandemic kept delaying our ability to arrange the financing and as lenders were extremely selective when contemplating student housing deals,” said Richards. “Fortunately, we had an extremely strong experienced buyer in Reliant CAP IX Fund that already owned a student community at VA Tech. Additionally, Pacific Life took the time to understand how tight the Blacksburg market is (specifically student housing at VA Tech) and offered a very attractive five-year structure. This was a win-win for all parties with Berkadia Newport News Investment Sales representing the seller and Berkadia Richmond Mortgage Banking arranging the debt for the buyer, and a smooth execution was the end result.”
“The sellers were able to use Berkadia’s knowledge and resources to help secure an aggressive price,” said Hudgins. “Reliant Group was already in the market and a great company to work with throughout the transaction.”
Hunters Ridge is a 72-unit property located at 1401 and 1441 Seneca Dr. The property features spacious four-bedroom floor plans with a balcony or patio, in-unit washers and dryers and full appliance packages. Community amenities include a clubhouse, a coffee bar, a gaming area with a pool table, grilling stations, a full-sized basketball court, a fitness center and a tanning salon.
