Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it has provided a first mortgage bridge loan in the amount of $19.1 million to finance the acquisition of a student housing property located in Tucson, Arizona.
The borrower is Tempe Friends And Family, LLC, backed by sponsors Edward Robson, Gerald Porter, and Howard Berger. The loan is structured as a 24-month floating rate loan with three, 12-month options to extend the loan term.
The Ledges at West Campus is a 596-bed townhouse-style student housing complex that was built in 1997 and was recently renovated between 2014 and 2017. The property is located at 2162 West Speedway Boulevard and consists of 32, two-story apartment buildings and a leasing office/clubhouse building.
The Ledges at West Campus is conveniently located near Tucson’s three major student population concentrations: The University of Arizona, and Pima Community College’s West and downtown campus.
“Approximately 65% of the tenants at The Ledges at West Campus are students and the property attracts students from both the University of Arizona and Pima Community College,” explained John Hurley, Vice President at Hunt Mortgage Group. “The remaining units are leased at market rates and the property provides tenants both by-the-bed and by-the-unit leasing options. Public transportation is readily available to the local campuses with a bus stop directly outside the property.”
The University of Arizona has an annual enrollment of approximately 43,625 students with positive growth annual increases since 2006, where enrollment was 36,805 students. Additionally, Pima Community College is one of the largest multi-campus community colleges in the country with an annual enrollment of 45,160 students and six locations across greater Tucson.
“The borrowing entity is comprised of several experienced multifamily and commercial real estate investors,” noted Hurley. “Since 2014, the previous owners invested approximately $4 million in exterior and interior enhancements, and the new owner is planning additional improvements. We were pleased to partner with them on this new loan.”
The unit mix is comprised of 28 one-bedroom units, 70 two-bedroom apartments, and 107 four-bedroom units. The property is currently 95.6% and project amenities include a leasing office/clubhouse, two heated swimming pools, spa/hot tub, barbeque grills and picnic area, volleyball court, fitness center and covered parking.