Franklin Street has arranged a $12 million short-term construction loan for Vertex Apartments, a 138-unit student housing apartment complex located in Tallahassee, Fla. Casey Siggins and Ben Miller of Franklin Street’s Capital Advisors division secured the loan on behalf of the sponsors, experienced student housing owner/operators based out of Boulder, Colo. The 15-month loan has a fixed rate of 9.5 percent and features an interest-only amortization schedule.
The property was partially renovated at the time of closing this loan and the borrowers will use the proceeds to complete the project by the start of the 2020-2021 school year. The owner plans to reposition the property to offer a high-quality product at more affordable pricing than their Class-A competitors in the market.
“We were introduced to the client through Franklin Street’s North Florida multifamily investment sales team, led by Jim Reed,” said Siggins, director of loan origination for Franklin Street’s Tampa office. “Franklin Street Capital Advisors leveraged our extensive network of creative capital sources to find a high loan-to-cost solution for an out-of-market sponsor. The loan was closed in less than three weeks from the application being executed. The expedited closing allowed the sponsors access to the construction funds necessary to complete the project within the framework of their business plan.”
“The Tallahassee student housing market is on the verge of experiencing significant growth with several large, Class A assets under development or in pre-development,” said Miller, director of loan origination for Franklin Street’s Tampa office. “We believe the Vertex fits well into this evolving market as the property will offer a more affordable option to students who don’t want to sacrifice quality.”
Built in 1968, Vertex Apartments is centrally located at 1832 and 1834 Jackson Bluff Road and caters to students at nearby Florida State University and Florida A&M University. The complex offers one, two, three and four-bedroom townhome-style apartments.
About Franklin Street: Founded in 2006 during one of the toughest real estate climates, Franklin Street focused on delivering value-added solutions to meet the evolving needs of clients. Through a collaborative philosophy of leveraging the resources, expertise and experience of each of its divisions – Investment Sales, Tenant and Landlord Representation, Capital Advisory, Insurance, Property Management and Project Management – Franklin Street offers unmatched value and optimal solutions for clients nationwide.
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