PHILADELPHIA, PA - NAI Bluestone Real Estate Capital (www.bluestonecap.com), a Philadelphia based real estate investment banking and advisory firm, has secured a $44M senior construction loan on behalf of Norfolk Housing, LLC, an affiliate of a national real estate development company, for The District at ODU, a 909 bed student housing facility in Norfolk, VA.
The District at ODU is a four-story, 307-unit, 909-bed student housing facility located within walking distance of Old Dominion University, one of the nation's fastest growing universities. With the construction financing in place, development of the student housing complex is now underway and is scheduled for delivery in June 2010. This project will help meet the demands of increased enrollment at the school, which has led to a housing deficit of approximately 2,500-5,000 bedrooms.
Once complete, The District at ODU will be an upscale student housing development designed to serve both Old Dominion University and the nearby East Virginia Medical School. Each unit will come fully furnished and will include a washer/dryer. The property will offer a mix of single, double, triple and quadruple-bed housing options for students, along with a full suite of amenities including a resort style swimming pool, computer lab, fitness center, recreation area and 24-hour maintenance.
"Securing any construction loan over $15M without syndication is incredibly difficult in today's market, particularly when you have a time sensitive construction schedule," said Tim Bradley, Senior Associate at NAI Bluestone Real Estate Capital. "In this case, we were able to secure a loan nearly three times that size, with favorable terms, and meet the proposed construction deadline to have The District at ODU completed for the fall 2010 semester. This speaks volumes about the strength of the project and the positive impact it will have on the surrounding student community."
To finance The District at ODU, NAI Bluestone secured a $44M variable rate bond representing 65% of the stabilized value. The initial construction term interest rate is below 4% and will convert to a 10-year permanent mortgage with a sub 7% fixed interest rate amortized over 30 years.
"In today's credit starved market, it more important than ever to find solutions that bridge the gap between community development needs - in this case, the need for additional student housing options - and available financing," said Matthew McManus, Chairman of NAI Bluestone Real Estate Capital. "The District at ODU is an example of how this can be done by matching a strong product with NAI Bluestone's creative financing solutions, lending relationships, and in-depth experience securing loans for student housing facilities nationwide."
NAI Bluestone Real Estate Capital is a Philadelphia-based commercial real estate investment banking and advisory firm that secures innovative debt, mezzanine, equity and sponsor equity financing for the nation's top-tier investors, operators, owners and developers. Leveraging its up to the minute market knowledge, credibility and relationships with highly regarded institutional financing sources, NAI Bluestone specializes in closing complex deals for sophisticated clients.
Source: NAI Bluestone Real Estate Capital