BETHESDA, MD – Walker & Dunlop recently financed two student housing portfolios for Scion Student Communities, a joint venture among The Scion Group, GIC and Canada Pension Plot Investment Board. Both portfolios were financed through Fannie Mae credit facilities.

The first transaction involved the acquisition of six student housing properties. Walker & Dunlop utilized the expansion and borrow-up features of an existing Fannie Mae credit facility to achieve optimal proceeds of $233 million. A second Fannie Mae credit facility of $416 million was structured for the acquisition of 11 additional properties.

The facility has both fixed and floating rate components to it with varying maturities. Many of the eleven properties qualified as Green Certified, reducing Scion’s borrowing cost significantly.  

Managing Directors Brendan Coleman and Will Baker led the Walker & Dunlop team on both transactions.

Mr. Coleman commented, “We are very excited to once again work with Scion, GIC and CPPIB on a highly strategic transaction. Our partnership with Fannie Mae has helped the joint venture to continue to expand its best-in-class student housing portfolio.”

Mr. Baker added, “In 2016 Walker & Dunlop financed $1.6 billion of student housing properties.  We have deep experience financing student housing properties, and these financings for Scion demonstrate our team’s expertise with large, structured transactions.”

Walker & Dunlop is one of the largest commercial real estate finance companies in the United States providing financing and investment sales to owners of multifamily and commercial properties.

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OXFORD, MS – Southern California-based Nelson Brothers Professional Real Estate recently closed on the buy of Molly Barr Trails and Molly Barr Ridge, two adjacent student housing properties near the University of Mississippi.

The properties were recently built (2012 and 2015 respectively) and fully amenitized. At the time of buy, both properties were at 100% occupancy with 12-month leases. The offering was offered as a DST (Delaware Statutory Trust) structure and eligible for 1031 investors.

Combined, the two properties have 125 units and 303 beds with 152,800 square feet. Each unit features a bathroom and bedroom for each student, nine-foot ceilings, washers and dryers, modern appliances and furnished common areas. Additional amenities include a pool, lounge, fitness center and surface parking with spots for each student. The properties are among some of the closest to Ole Miss and also near a hiking and biking trail.

“We’re really pleased with the strong performance of this property and considering that it’s a relatively new acquisition, this has already become a showcase in our portfolio,” stated co-owner and Chief Marketing Officer Brian Nelson. “We have found that Ole Miss has been a fantastic draw for us based on the growing enrollment and with our first acquisition of Taylor Bend. “We believe that the university will continue a slow but steady growth and with limited new projects in the works, occupancy rates will tighten as demand continues to grow.”

Molly Barr was offered as a DST (Delaware Statutory Trust) structure and eligible for 1031 investors. The initial total offering price to investors for the two properties was $25,777,637 of which approximately $11.2 million came from investor equity.

This was Nelson Brothers’ 27th equity raise since their founding in 2007. To date, the firm has raised over $175MM from over 900 investors through the registered investment advisor and broker dealer marketplace.

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KANSAS CITY, MO – PRG Real Estate, a leading multifamily real estate investment and management firm, announced the acquisition of Reserve at Barry Apartments, located in Kansas City, Missouri.

Reserve at Barry is a 690-unit garden-style apartment community located in the Northlands area of Kansas City. The community is located between the major thoroughfares of I-29, Missouri 152 and NW Barry Road providing proximity to major employers such as AMC Entertainment, Sprint and Garmin International.

Regional attractions such as the Zona Rosa shopping center, Barry Woods Crossing, and The Shops at Boardwalk Square make this area one of the metro’s most sought-after destinations.

Built in 1986, the Reserve at Barry provides an appealing mix of 1 and 2-bedroom apartment homes along with 3-bedroom duplexes offering spacious floorplans averaging over 900 square feet. The property provides a wide variety of amenities for residents including two clubhouses, a fitness center, two resort-style swimming pools, as well as tennis and volleyball courts.

PRG plans to transform the community by remodeling the two clubhouses, expanding the pool deck with added grilling stations, upgrading and tripling the size of the fitness center and installing the largest dog park in Kansas City. The apartment interiors will be renovated with new cabinets, granite countertops, new flooring and the installation of full-size washers and dryers.

“PRG is excited to buy Reserve at Barry, our 2nd acquisition in the Kansas City marketplace,” states CEO Sam Foster. “We are excited to continue our growth in the booming Kansas City area. Through extensive property renovations and the installation of an experienced management team our business plot will add significant value to the property thereby greatly enhancing the living experience of our residents and the community as a whole.”

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