(Read more on the debt and equity markets and the multifamily market .)
ATHENS, GA-Champaign, IL-based Campus Acquisitions LLC has acquired the 244-unit, 462-bedroom River Mill Apartments with $20.2 million in financing. The fixed-rate loan was provided by GE Real Estate.
GE Real Estate director Greg Pettigrew tells GlobeSt.com that the loan was provided at an 80% loan-to-value ratio. About $2 million of the loan will be used for capital improvements. "This loan came in right before the credit crunch, but we were able to close it and fund it without any significant changes to the terms," Pettigrew says.
River Mill Apartments serves students at the University of Georgia. It was 100% leased prior to the start of the fall semester. It is located across from Sanford Stadium and within a five-minute walk of the main library, Tate Student Center, campus bookstore, law school and schools of fine arts, journalism, psychology, geography, chemistry and biological sciences. Amenities include a pool and deck, fitness center, game room/clubhouse/picnic area and conference room.
"We like student housing as long as it located near a major university," Pettigrew says. "This transaction fit the mold of the type of student housing we like to fund."
Campus Acquisitions plans to spend $3.3 million over the next 12 to 24 months to renovate the property. "The property's location in Athens with direct access to the University of Georgia is ideal and the student housing market there remains vibrant," Campus Acquisitions principal Thomas Scott says in a prepared statement.
James Tramuto, of CB Richard Ellis/Melody, raised both the debt and equity for the transaction. Ryan Reid, of the Dallas office of CB Richard Ellis, represented the seller.
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