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Purpose-built student housing financing near major universities
Student housing is a specialized asset class with unique operating characteristics. George Smith Partners understands the by-the-bed leasing structures, academic calendar-driven operations, and university enrollment trends that drive underwriting.
We have relationships with lenders who specialize in student housing, from agency lenders providing competitive permanent financing to debt funds supporting development and value-add acquisitions near growing universities.
Enrollment trends, academic rankings, and institutional stability of the affiliated university.
Walking distance or direct transit access to main campus facilities.
Track record of achieving high pre-lease percentages before fall semester.
Analysis of existing and pipeline student housing supply in the market.
Modern amenities including study spaces, fitness centers, and social areas.
Sponsor track record in student housing operations and lease-up.
Student housing is underwritten on a by-the-bed basis rather than by-the-unit, reflecting how leases are structured with individual students. Lenders also evaluate university enrollment strength, proximity to campus, pre-leasing velocity tied to the academic calendar, and the seasonal turnover inherent in student tenancy.
Yes, most lenders prefer properties within walking distance or a short transit ride of a major university campus. Proximity to a Tier 1 or flagship state university with stable or growing enrollment significantly improves financing terms, while properties near smaller or enrollment-declining institutions face more conservative underwriting.
Lenders typically want to see pre-leasing reach 80% to 90% of beds before the fall semester begins. Strong pre-leasing velocity demonstrates market demand and reduces lease-up risk. For development loans, lenders will also evaluate the sponsor's historical pre-lease performance at comparable properties.
Yes, both Fannie Mae and Freddie Mac offer financing programs for stabilized, purpose-built student housing. These properties must demonstrate consistent occupancy, strong university affiliation, and professional management. Agency loans provide competitive fixed rates and non-recourse terms for qualifying assets.
Our team can help you secure financing for your student housing investment.
Discuss Your Student Housing Financing