Semco Investments LLC has secured a $20 million first mortgage on its Campus Palms Apartments at 13016 Leeds Ct. in Tampa, FL.
Ben Miller and Casey Siggins of Franklin Street Capital Advisors (FSCA) arranged the $20 million, non-recourse loan. The financing carries a 4.85-percent fixed rate over a 10-year term with a 30-year amortization schedule.
Built in 1971, the two-story multifamily commuinity now features 232 student housing units in the University Square MF submarket of Hillsborough County.
“Rates for strong borrowers have started to increase, even for well-stabilized assets, due to improved market conditions and the Fed increasing interest rates,” noted Siggins.
By using the increased income from the student housing conversion, FSCA was able to show the increased value of the property. The borrower will use the proceeds, a significant amount of cash-out equity, to pay off existing debt on other properties in its portfolio and seek out more multifamily investments in the market. The Miami-based multifamily investor focuses on the Tampa market.