Alliant Credit Union funds three student housing loans totaling in excess of $51 million
Financing completed for properties near Lousiana State University, Baylor University and University of Tennessee
CHICAGO, IL (October 21, 2021) — Alliant Credit Union announced that it has closed over $51 million in financing for three student housing properties in the southern United States. All three properties are located near top-rated universities—Louisiana State University, Baylor University and the University of Tennessee, Knoxville.
“As college students returned to campus this fall, we have continued to see heightened investor interest in the student housing market, in particular near top-tier schools,” said Paul Letourneau, Manager, Commercial Loan Originations, Alliant Credit Union. “In the resilient student housing market, borrowers will be well-prepared to withstand future downturns by selecting well-located assets and partnering with balance sheet lenders that offer flexible financing terms.”
Acquisition loan for student housing asset in Baton Rouge, La.
In Baton Rouge, La., Alliant provided acquisition financing to Versity Investments for a student housing property associated with Louisiana State University (LSU). The purpose-built apartment building comprises 244 residential units and 466 beds. Located one mile south of LSU, it is 100% leased for the 2021/2022 school year and historically has operated at near-full occupancy with favorable pre-leasing statistics. The seller completed significant renovations to offer competitive interior and community amenities, including lounges, two pools, coffee bar, fitness center, grilling area and more. The sponsor, Versity Investments, is a premiere student housing operator managing over 30 properties across the country. The company is a repeat borrower of Alliant.
“Alliant is excited to have closed another transaction with Versity Investments, allowing it to continue growing its portfolio of high-quality assets,” said Yonah Sturmwind, Commercial Loan Specialist and Originator at Alliant Credit Union. “This is one of the top-performing properties in the market because of its location and amenity offerings.”
Josh Perew of Walker & Dunlop referred the transaction to Alliant.
Acquisition loan for amenity-rich student housing in Waco, Texas
Alliant Credit closed on acquisition financing for a student housing property located approximately one mile from Baylor University in Waco, Texas. The complex includes 116 apartments in three buildings with a combined 455 beds. The properties are operating at capacity, outperforming the overall market. Community amenities include two resort-style pools and spas, sand volleyball court, basketball court, private jogging trail and fitness center. Free high-speed internet and expanded cable TV are included in every unit.
The flexible loan structure included a three-year term with extension options, flexible yield maintenance and a 30-year amortization. Alliant thanks Patrick Short of Walker & Dunlop for referring the opportunity.
“We navigated an extremely tight timeline to execute a fast closing for a savvy, experienced sponsor group. We’re happy to be associated with such a dynamic, diverse Power Five Conference university with strong enrollment statistics,” said Jeff Joyner, Commercial Loan Originator at Alliant Credit Union. “The tight loan closing would not have been possible without the execution help of Patrick Short of Walker & Dunlop and an engaged sponsor group.”
Refinancing for garden-style complex in Knoxville, Tenn.
Alliant funded the refinancing of Maplehurst Park in Knoxville, Tenn., a multifamily property encompassing 20 garden and low-rise contiguous buildings with a total of 196 units. Operating at near capacity, the property is adjacent to the University of Tennessee (“UT”) campus along the Tennessee River and overlooks Neyland Stadium. With students comprising approximately 60% of the residents, the units are consistently leased every year because of their historic design charm and location. Upon acquisition, the sponsors invested $6.25 million in gut renovations of all units, as well as improvements to the façade and landscaping. The deal was referred to Alliant by Bill Mattice and Paul McDonald of Grandbridge Capital.
“Alliant was proud to finance this historic and unique grouping of properties, and support the borrower’s value-add plan to revitalize, renovate and convert these assets into student housing,” said Jeff Joyner, Commercial Loan Originator at Alliant Credit Union. “Alliant is excited to be aligned with the University of Tennessee in downtown Knoxville and the high-quality, experienced sponsors behind the deal.”
Acquisition loan for amenity-rich student housing in Waco, Texas
Maplehurst Park in Knoxville
Maplehurst Park in Knoxville
Acquisition loan for student housing asset in Baton Rouge, La.
About Alliant Credit Union (IL)
Alliant Credit Union is a not-for-profit financial cooperative with more than 850,000 members and nearly $19 billion in assets. Alliant was named one of CNBC's Top Credit Unions for 2023 and one of Money.com's Best Banks for America. Headquartered in Chicago and founded in 1935, Alliant is the largest credit union in Illinois and one of the largest credit unions in the United States. As an all-digital credit union, Alliant's mission is to provide members with a tech-forward banking experience coupled with consistent, superior financial value while simplifying and enabling how people save, borrow and pay.
