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Alliant Credit Union closes two student housing transactions totaling in excess of $52 million

Transactions completed for properties in Austin, Texas, and Statehouse, Ga.

Alliant Credit Union announced that it has closed over $52 million in financing for two student housing properties. In Austin, Texas, the Credit Union funded a $39.05 million acquisition loan for a Class A student housing property associated with University of Austin. In Statesboro, Ga., Alliant financed a $13 million refinancing loan for a Class A student housing complex associated with Georgia Southern University.

“The student housing market is seeing new activity, especially properties located near power conference schools, in proximity to campus and where demand outpaces current supply,” said Paul Letourneau, Manager Commercial Loan Originations, Alliant Credit Union. “As interest rates remain low, borrowers are seizing opportunities to refinance or pursue value-add acquisition opportunities.”

$39.05 million acquisition loan for new construction in Austin, Texas

In Austin, Texas, Alliant funded a $32 million loan toward the acquisition of a newly constructed, Class A, 18-story, 451-unit student housing tower located two blocks from the University of Texas (UT Austin). Through a Delaware Statuatory Trust (DST), the borrower was Versity Investments, a premier private operator and owner of over 30 multifamily properties across the United States. The loan structure includes an interest-only period and flexible exit options, and was structured to allow for acquisition via a DST. Josh Perew, Director, Walker & Dunlop, referred the transaction to Alliant Credit Union.

The 18-story property is ideally located for students seeking housing within walking distance of campus. It offers top-tier amenities, including the highest-quality finishes in the market, a rooftop pool and spa, state-of-the-art fitness center, rideshare service and more.

Adding to the property’s appeal is that UT Austin is a top U.S. public research university consistently ranked among the top 50 U.S. universities. The institution attracts a diverse student population that creates strong demand for housing near the UT Austin campus.

“We were pleased to provide a flexible financing structure that meets the needs of Versity Investment’s clients,” said Yonah Sturmwind, Commercial Loan Specialist Originator at Alliant Credit Union. “This transaction is backed by the power of a prestigious student housing owner and operator with a premier, high-quality property.”

$13 million refinancing for Class A garden-style complex in Statesboro, Ga.

In Statesboro, Ga., Alliant Credit Union closed a $13 million refinancing loan for a Class A student housing property located near Georgia Southern University (GSU) in southeast Georgia. The loan replaced a higher-priced bridge loan and provided an interest-only period, earn-out upon full stabilization, and flexible exit options. The borrower was a privately held, experienced student housing owner and operator of more than 5,000 beds across the United States. Daniel Kaweblum, senior vice president, operations, at FM Capital referred the transaction to Alliant.

With 528 units, the garden-style complex is located near the GSU campus and within walking distance of the football campus. Amenities include a clubhouse with lounge, fitness center, study rooms, pool, sports courts and game rooms.

“We were able to provide the project sponsor with ongoing flexibility and future loan proceeds as its team renovates the property and executes its value-add business plan,” said Alliant’s Sturmwind. “We were pleased to be able to partner with a leading national student housing owner and operator.”