Transaction Overview
Steve Bram, Allison Higgins and Paul Monsen successfully placed the 58% loan to value refinancing for the 118 bed student housing project in Berkeley, California. The dormitory style configuration is positioned over 6,000 square feet of ground floor retail on Telegraph Avenue near the UC Berkeley Campus. Fixed at 3.91% for 10 years, the non-recourse loan carries a 30 year amortization schedule.
Challenge: Our Sponsors requested a portfolio execution, however the property only had one year of operational history. The dormitory style construction precluded a market tenancy, and the class schedule of the school year yielded multiple months of high vacancy that spiked during the application process.
Solution: GSP effectively demonstrated the Sponsor’s continually increasing NOI and the strength of the location would continue to be a driving factor for higher occupancy. The vacancy bump during the application process resulted from an unusual non-reoccurring circumstance.
