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EdR and Partners Secure $129M in Loans for Student Housing

Financing Package Tied to Projects in Minnesota, Georgia
July 3, 2018
A joint venture that includes Schenk Realty Group and Memphis, TN-based EdR has secured new mortgages totaling $129.4 million on two large student housing properties, one in Minnesota and the other in Georgia.

HFF arranged the financing package on behalf of the borrowers, placing the loans with London-based TH Real Estate.

The parties involved were not immediately available for comment.

The Marshall is a 994-bed, 316-unit student housing complex at 1313 5th St. SE in Minneapolis, MN, just northwest of the University of Minnesota’s main campus. The seven-story, mixed-use building was developed by Schenk, EdR (formerly known as Education Realty Trust) and Chicago-based GEM Realty Capital in 2014. Retail on the bottom floor is anchored by TargetExpress, a pilot for Target Corp.’s growing roster of small-format stores.

TH is providing $83.2 million in financing for The Marshall, which will allow the owners to recapitalize on the property. The Marshall was given an assessed value of $95.6 million for taxes payable in 2019, according to Hennepin County records. The building had an occupancy rate of 98.8 percent as of March 30, 2018.

Georgia Heights is a 294-bed, 268-unit student housing complex at 150 W. Broad St. in Athens, GA. EdR again partnered with GEM on the mixed-use project, completing construction in 2015, according to materials published at the time.

TH is providing a first mortgage amounting to $46.2 million, intended for the recapitalization of Georgia Heights. The building was assessed at $46.1 million for taxes payable in 2018, according to the most recent records on file with Clarke County, GA.

  In Other News: On June 25, EdR announced that it would be absorbed by a newly-formed fund, Greystar Student Housing Growth and Income Fund, an affiliate of Charleston, SC-based Greystar Real Estate Partners. The $4.6 billion deal is expected to close in the second half of 2018.

The Greystar entity was drawn to the breadth and quality of EdR’s holdings, according to a statement by company executives.

"EdR has one of the highest quality and best located student housing portfolios in the U.S.," Greystar Founder and Chief Executive Bob Faith said in a news release.

In addition to being a prolific developer of student housing, EdR owns or manages 79 communities in or around 50 universities in 25 states. The trust’s portfolio includes more than 42,300 beds.

Schenk Realty Group has acquired, developed or re-developed about 8,500 student-occupied units, representing over 18,500 beds in university markets around the U.S.

Clare Kennedy, Minneapolis / St. Paul Market Reporter  CoStar Group   
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