East Coast Financier Provides $30 Million Loan Package For Student Housing In Fayetteville

Publicly traded Walker & Dunlop Inc. said Thursday that it has structured a $30 million fixed rate Fannie Mae loan to finance the recent purchase of Fayetteville student housing community Sterling Frisco, an upscale, eco-friendly apartment complex acquired earlier this year by Pennsylvania-based GMH Capital Partners.

The loan was originated as a 10-year loan, with eight years interest-only, followed by a 30 year amortization schedule, William and Dunlop officials said.

“Due to the strength of the sponsorship, quality of the asset and proximity to campus, we were able to obtain outstanding terms to facilitate this acquisition,” Will Baker, senior vice president and managing director for the Maryland-based real estate financier, said in a statement. “We are very excited to be a part of the re-emergence of GMH back into the student housing market as well as their first deal through their new strategic, joint venture platform with Principal Real Estate Investors.”

GMH announced the acquisition of the Fayetteville housing complex in early February, saying it was the first deal following its joint venture with real estate advisor and asset management group, Principal Real Estate Investors. Denver-based Principal is one of the nation’s largest real estate brokers, managing $57.3 billion in commercial real estate assets.

The student housing community, which is adjacent to the University of Arkansas campus at Maple Street and West Avenue in downtown Fayetteville, consists of 219 units and 640 bedrooms, each with its own private bathroom, officials said.

Currently, the property features state-of-the-art amenities, including a 24-hour fitness center, computer lab, study lounges, pool with cabanas, a roof-top deck and a secured parking garage. Each of the units has its own washer and dryer as well as cable and internet included.

GMH said it also plans on adding a variety of other upgrades including increased bandwidth with faster than normal internet speeds, Wi-Fi in all student living areas, and enhanced cable package with digital HD service and DVRs, and outdoor living features to the pool patio and rooftop terrace. The East Coast real estate investor said it also plans to upgrade the apartment’s security, including adding card access and video surveillance system.

Besides the Fayetteville apartment complex, GMH said its plans to pursue other student housing opportunities in various markets across the U.S. through its joint venture with Principal. The partnership also plans to acquire or develop up to $650 million worth of student housing assets amongst all risk profiles, officials said.

In the past, GMH has owned and operated nearly 70,000 student housing beds across 29 states, officials said. “GMH Capital Partners and the team at Principal Real Estate Investors worked diligently together to make this opportunity our first success story under our new partnership,” said Jim Kirby, executive vice president at GMH.