CHAMPAIGN, IL-Campus Living Villages, based in Houston, has refinanced Illini Tower, a 16-story student housing property at the entrance of the University of Illinois. Grubb & Ellis Co. arranged the $38 million, 10-year fixed-rate loan.
Jim Adams, EVP with Grubb & Ellis, arranged the original purchase in 2008. He says Campus Living decided against extending the acquisition financing. The loan for the 725-bed property was completed at 70% loan-to-value with a CMBS lender. The owner, which has more than 30,000 beds in the United States, Australia, England and New Zealand, spent $1 million on renovations to the public and exterior spaces of Illini Tower in the recent spring.
Adams says the property is always highly occupied and has good rents. “There’s always the handful of properties at the large schools that are well known and well located, this is one of those,” Adams tells GlobeSt.com.
He says the property class as a whole is more secure than even the best assets right now, apartments. “Every major property near a campus is doing very steady work, though if someone has built incorrectly or far from campus, those may be more challenged,” Adams says.
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