TSB Capital Advisors Consults on the Sale and Acquisition of Two Off-Campus Student Housing Assets

TSB Capital Advisors (TSBCA) consulted on behalf of Capstone Properties on the sale of two assets.  The first property, The Cottages of Baton Rouge, is located near Louisiana State University (LSU).  The first phase of the property opened in August 2010 while the second and final phase was completed only a few months prior to the acquisition.  According to the buyer, Kayne Anderson Real Estate Advisors (KAREA), the Cottages are the largest and most compelling asset in the Baton Rouge market. The Cottages contain 382 units and 1,290 beds. The second property, The Lodges of East Lansing, is located near Michigan State University (MSU). The Lodges contain 220 units and 683 beds.

The two properties were not publicly marketed and sales prices are confidential.  However,  both properties commanded attractive prices. The buyer and seller were brought together by Tim Bradley of TSB Capital Advisors. “I knew there was a strategic fit between KAREA and Capstone,” said Bradley.  “The sale of these two assets is just part of a much larger relationship between the two companies.  TSBCA is proud to have been a part of these transactions.”

In addition to bringing together buyer and seller, TSBCA also secured the acquisition financing for KAREA. Details of the financing are confidential, but both financings closed with an early rate lock and extremely low interest rate, allowing KAREA to lock in their rate and expected proceeds months in advance.