BETHLEHEM, PA–Salmanson Capital, a national real estate firm specializing in the repositioning of student housing assets, recently purchased an off-campus student housing portfolio adjacent to Lehigh University here. The New York-based company paid $15,230,000 for the scattered-site portfolio with 394 beds.
The portfolio includes a mix of apartment buildings and townhouses totaling 108 units on 50 properties, all of them within blocks of campus, and all sold by a local owner.
With the acquisition. Salmanson Capital’s total portfolio swells to 452 units and 1,336 beds in three college towns - Lehigh, Syracuse University and the University of Nebraska-Lincoln.
The portfolio was acquired from a local owner and will be managed by Salmanson Capital’s affiliate, Campus Hill Management. The properties will be rebranded as Campus Hill Apartments, which marks the first expansion of the brand outside of Syracuse University.
“The apartment buildings and townhouses we acquired at Lehigh already possess the best locations in the marketplace,” says David E. Salmanson, president of Salmanson Capital. “By renovating all of the kitchens and bathrooms with high-end finishes, upgrading the management services and adding technological upgrades, we will be able to offer the students at Lehigh University a very high quality housing option that did not exist in the market before.”
Units will also get new furniture, Salmanson says. Furthermore, the buildings will have full-time professional management.
“We are confident students will find that Campus Hill Apartments offers a coveted, safe and upscale place to live, complete with a management team the students and their parents can depend on,” he said.
A 10-year fixed-rate loan with Citibank for the Lehigh acquisition was arranged by Jason Krane of Ackman Ziff.
Salmanson Capital also recently completed a $30,750,000 refinancing of its 232-apartment, 614-bed Syracuse University student housing portfolio, acquired in 2007 for $26 million. Salmanson expanded the portfolio by acquiring additional properties, bringing its total Syracuse portfolio to over 700 beds. Rodney Shenman of KeyBank helped to arrange a 10-year fixed Freddie Mac loan. Kitchens and bathrooms have been renovated, and technology and management upgraded at the Syracuse properties.
Salmanson is actively seeking to acquire additional off-campus student housing assets.
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