NEWPORT NEWS, VA — June 25, 2021 — Berkadia announced today the sale of and financing secured for a three-property student housing portfolio in Blacksburg, Virginia. The properties in this portfolio included Hunters Ridge, Maple Ridge Townhomes and Collegiate Suites of Blacksburg. Senior Director David Hudgins of Berkadia Newport News completed the sale on behalf of the seller and the buyer. The buyer was California-based Reliant Group, and the deal closed on May 5.
Managing Director John Richards of Berkadia Richmond secured the $100.2 million in financing for the acquisition of this property on behalf of the buyer. The five-year Pacific Life Insurance loan included full-term interest-only, a 30-year amortization schedule and a 2.66 percent interest rate.
“This deal was challenging on so many fronts as uncertainty from the pandemic kept delaying our ability to arrange the financing and as lenders were extremely selective when contemplating student housing deals,” said Richards. “Fortunately, we had an extremely strong experienced buyer in Reliant CAP IX Fund that already owned a student community at VA Tech. Additionally, Pacific Life took the time to understand how tight the Blacksburg market is (specifically student housing at VA Tech) and offered a very attractive five-year structure. This was a win-win for all parties with Berkadia Newport News Investment Sales representing the seller and Berkadia Richmond Mortgage Banking arranging the debt for the buyer, and a smooth execution was the end result.”
“The sellers were able to use Berkadia’s knowledge and resources to help secure an aggressive price,” said Hudgins. “Reliant Group was already in the market and a great company to work with throughout the transaction.”
Hunters Ridge is a 72-unit property located at 1401 and 1441 Seneca Drive. The property features spacious four-bedroom floor plans with a balcony or patio, in-unit washers and dryers and full appliance packages. Community amenities include a clubhouse, a coffee bar, a gaming area with a pool table, grilling stations, a full-sized basketball court, a fitness center and a tanning salon.
Maple Ridge Townhomes is located at 344 Red Maple Drive. The 314-unit property features two-, three- and four-bedroom floor plans with in-unit washers and dryers and full appliance packages. Community amenities include a swimming pool, a fitness center, a tanning salon, a grilling station and a two-story clubhouse.
Collegiate Suites at Blacksburg is a 210-unit property located at 1310 Henry Lane. The property features one-, two- and four-bedroom floor plans with full appliance packages, laundry rooms with storage, living room and bedroom furniture packages and private bathrooms. Community amenities include a clubhouse with a fitness center, a coffee bar, a game area, picnic areas with grilling stations, a basketball court and a tanning bed.
The properties afford residents convenient access to Virginia Polytechnic Institute and State University, U.S. Route 460 and the shops and restaurants along North Main Street.