Description

Financing for existing, stabilized properties that, because of construction or location, specifically cater to a student tenant base and are not readily convertible to conventional multifamily housing. These properties have undergraduate or graduate students comprising at least 80% of their tenant base.

Loan Amount

$3,000,000 minimum, with exceptions on a case-by-case basis.

Loan Terms

Maximum term of 10 years.

Amortization

25-year amortization, with exceptions on a waiver basis.

Prepayment

Pre-payable in full at any time subject to a yield maintenance formula.

Recourse

Non-recourse, except for standard lender carve-outs.

Debt Service Coverage

Minimum 130%

Loan to Value

Maximum 75%

Subordinate Financing

Yes, funded second mortgages available after the first year.

Occupancy

Properties must be 90% occupied at loan funding for the 90-day period prior to commitment.

Assumability

Yes, subject to lender approval and the payment of processing costs and a 1% assumption fee.

Reserves

Tax and insurance escrows are required. Replacement reserves and repairs required as determined by a physical needs assessment. Flexible funding terms available.

Rate Lock

Rates are usually fixed ten days prior to closing; may be locked as early as 90 days before closing.

Application Fee (est.)

$15,000. Covers the cost of all third party reports, travel expenses and other out-of-pocket expenses.

Property Requirements

• Properties should be located at a University with at least 10,000 students, the majority of which are full time.
• Properties should be located within two miles of campus or on a university sanctioned bus line.
• 12 month leases with parental guarantee or equivalent credit for employed students.
• Food service is not permitted.