Lubbock, Texas (March 1, 2019) – Berkadia announces it has arranged a $48.687 million refinance loan for Capstone Cottages of Lubbock, a 969-bed student housing community with 216 units in Lubbock. Berkadia’s South Florida Capital Markets team of Senior Managing Director Charles J. Foschini, Senior Managing Director Mitch Sinberg, Managing Director Christopher Apone, Associate Director Matt Robbins, Senior Analyst Lourdes Carranza-Alvarez, and Analyst Shannon Wilson arranged the refinancing on behalf of Kayne Anderson Capital Advisors LP, an alternative investment management firm based in Boca Raton, Florida, and Capstone Collegiate Communities, a student housing development and investment firm based in Birmingham, Alabama.
Freddie Mac originated a 7-year, floating rate loan with two years interest only and a 65 percent LTV ratio.
“The student housing market exhibits solid advantages with consistent annual demand and returns,” said Foschini. “The opportunities for educated investment within the sector continue to make this asset class increasingly attractive, regardless of where we are in the economic cycle. Freddie Mac also continues to provide great flexibility to those it shares a relationship with. The transaction came with a variety of advanced waivers and approvals including a unique prepay option should the buyer decide to sell the asset in the near term.”
Built in 2017, Capstone Cottages of Lubbock is located at 4702 4th Street. One-, two-, three-, four-, and five-bedroom units include granite countertops, stainless steel appliances, range, and washer/dryer. Community amenities include a business center, clubhouse, conference room, grill, picnic area, and multi-use room.
Located in northwest Lubbock, Capstone Cottages of Lubbock is located near the city’s downtown core and is less than five minutes away from Texas Tech University, ranked as the best cost-effective university in the Southwest. The community is also less than 10 minutes away from important transit routes including US-82 and Texas 289 Loop, offering convenient access to Lubbock and other Texas metropolitan areas.