TSB Capital Advisors brokers student housing portfolios totaling 1,576 beds

BETHESDA, MD — Walker & Dunlop, Inc. announced today that it structured $160,749,000 in financing for the 908 Portfolio and the Zaragon Portfolio. Totaling 1,576 beds, the combined portfolio comprises five dedicated student housing properties, two of which include an affordability component, consistent with the S.M.A.R.T. Housing Policy Initiative implemented by the City of Austin, Texas.

Walker & Dunlop’s Managing Director Will Baker, Vice President William Shell, and Assistant Vice President Doug McDaniel provided the debt, in collaboration with Tim Bradley of TSB Capital Advisors, who brokered the transaction.

The team worked closely with the joint venture owners, Landmark Properties and Ocean West Capital Partners, to develop a tailored financing solution for the five-property acquisition. Thanks to their extensive experience with the GSEs’ loan programs, the Walker & Dunlop team was able to leverage a unique loan structure that cross-collateralizes the properties within each portfolio and provides a single, streamlined loan.

Located in Ann Arbor, Michigan, the Zaragon Portfolio comprises ZWest and ZPlace, two non-contiguous properties catering to students attending the University of Michigan. The properties were financed with a ten-year Fannie Mae loan featuring full-term interest-only payments. Walker & Dunlop also leveraged the GSE’s Green Rewards program, which provides discounted rates to owners and developers who implement energy- and water-saving improvements.

The 908 Portfolio includes Nine at Tallahassee, located in Tallahassee, Florida, and Nine at West Campus, and Nine at Rio (pictured above), both located in Austin, Texas. Serving students of Florida State University and the University of Texas, respectively, the portfolio was financed by a ten-year, full term, interest only loan from Freddie Mac. Walker & Dunlop was able to rate lock the debt before two of the three properties were delivered in August 2019, due to the exceptional sponsorship and strong demand for student housing options in each area.