CBRE Arranges $75M for Student Housing

RALEIGH, NC—CBRE Capital Markets’ Debt & Structured Finance team has arranged a $75 million loan for the Stanhope Student Apartments, a five-story, 300-unit, 822-bed, mixed-use student housing facility located adjacent to North Carolina State University’s main campus in Raleigh. Mark Fisher and Alex Furnary, of CBRE’s Midtown Manhattan office, along with David Meese and Tom Kobus, of CBRE’s Pittsburgh office, facilitated the financing on behalf of the borrower.  CBRE secured a 20-year, fixed-rate, non-recourse loan from one of its correspondent lenders, AIG Investments. The loan was committed without any tenants in occupancy and closed with retail space still to-be-leased (half of the retail space is leased to CVS).   “AIG’s experience with student housing allowed it to assess Stanhope’s potential and value early on,” said Fisher. “The student housing portion was fully leased 30 days after it opened in July. This is truly a state-of-the-art facility that redefines campus living.” Located at 3001 Hillsborough Street in the heart of Raleigh, the property was developed by a JV led by managing partner Kane Realty Corporation. “Kane is well known for its highly acclaimed and very successful North Hills mixed-use development. This project is another, best-in-class example of this innovative developer’s capabilities,” Fisher added. The property features 9-foot ceilings, a saltwater pool, two-story health club, cyber-lounge, art studio, tanning beds, two-story game room and ground-floor retail. Deck parking is provided for tenants on the same floor as their unit. Apartments contain a full washer/dryer, en suite full bathrooms in each bedroom, granite kitchen counters, large screen TV, wood floors, and more, offering students true “luxury living.”