TH Real Estate,an affiliate of Nuveen (the investment management arm of TIAA),has arranged two separate loans for two student housing properties adjacent to the main campuses of major universities in Minneapolis, Minnesota and Athens, Georgia. TH Real Estate has arranged both loan facilities in partnership with a joint venture between Schenk Realty Group and EdR (formerly known as Education Realty Trust), which owns both properties.
“As student populations continue to grow, specialized student housing developers have stepped in to build fully-amenitized, off-campus housing alternatives to traditional university dormitories. These apartment communities often are in walking distance to classrooms and retail locations and provide a wide range of conveniences to student, which helps support high occupancy rates,” said Copeland Cherry, Director of Mortgage Investments at TH Real Estate.
The Marshall - Minneapolis, MN: TH Real Estate is financing an $83.2 million, 63% loan-to-value (LTV) facility for the re-capitalization of The Marshall, a 994-bed and 316-unit, Class A student housing community adjacent to the main campus of the University of Minnesota. Developed in 2014, The Marshall offers a host of amenities in the “Dinkytown” neighborhood, the most sought after living area for students at the University of Minnesota, and was 98.8% occupied as of March 30, 2018.
Georgia Heights - Athens, GA: TH Real Estate is providing first mortgage financing in the amount of $46.2 million at a 60% LTV ratio for the re-capitalization of Georgia Heights, a 294- bed and 268-unit, Class A student housing community located in Athens, GA, adjacent to the main campus of the University of Georgia. Developed in 2015, the property is situated across the street from the main campus of the University, providing students the ability to walk to school and easy access to Athens’ major retail corridor with local boutiques, restaurants and retailers.
“With continuous demand for student housing supported by rising student enrollments combined with current limited existing and planned on-campus housing, we believe the loans for The Marshall and Georgia Heights will exhibit strong positive returns,” added Cherry.
TH Real Estate has been investing in commercial real estate debt since 1934 and originated over $7 billion of real estate loans in 2017. The firm’s origination team features over 20 professionals located in four offices across the US that leverage the expertise and capabilities of TH Real Estate’s global real estate equity and debt investing platform. The firm’s debt origination platform originates senior, junior and whole loans secured on a wide range of property assets. It has the ability to enter into bilateral loans or participate in club transactions.
Schenk Realty Group has acquired, developed or re-developed more than 8,500 student-occupied units containing over 18,500 beds in university markets across the country. EdR (NYSE:EDR) is a real estate investment trust that owns or manages 67 communities in 24 states with more than 37,000 beds within more than 12,000 units. HFF (NYSE : HF) served as the broker in the transaction.
About TH Real Estate
TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA), is one of the largest real estate investment managers in the world with $114bn in AUM. We provide access to every aspect of real estate investing. With over 80 years of investing experience, and more than 530 real estate professionals located across 22 cities throughout the US, Europe and Asia-Pacific, the platform offers unparalleled geographic reach, which is married with deep sector expertise.
Our investment, asset management and corporate strategies grow from a deep understanding of the structural trends that we believe will shape the future of real estate and responsible investing beyond market cycles. This ‘Tomorrow’s World’ approach sits at the core of our investment process and business operations, informing our long-term view of real estate investments for the enduring benefit of both clients and society.
