Salmanson Capital, LLC, a New York-based real estate firm specializing in the acquisition and repositioning of student housing assets, has acquired an off-campus portfolio adjacent to Lehigh University in Bethlehem, Pa., for $15,230,000.
The scattered-site portfolio purchased in an off-market transaction includes a mix of apartment buildings and townhouses totaling 108 units with 394 beds across 50 properties, all of which are within blocks of campus.
A 10-year CMBS fixed-rate loan with Citibank was arranged by Jason Krane of Ackman Ziff.
The acquisition brings Salmanson’s total portfolio to 452 units and 1,336 beds in three college towns, including Syracuse University and the University of Nebraska-Lincoln.The portfolio was acquired from a local owner and will be managed by the Salmanson affiliate, Campus Hill Management. The properties will be rebranded Campus Hill Apartments, the first expansion of the brand outside of Syracuse University. Salmanson Capital plans to spend $2 million on capital improvements at the properties.
“ By renovating all of the kitchens and bathrooms with high-end finishes, upgrading the management services and adding technological upgrades, we will be able to offer the students at Lehigh University a very high quality housing option that did not exist in the market before,” said David E. Salmanson, president of Salmanson Capital.
Salmanson also recently completed a $30,750,000 refinancing of its 232-apartment, 614-bed Syracuse University student housing portfolio. Rodney Shenman of KeyBank helped to arrange the 10-year fixed Freddie Mac loan. The portfolio, Campus Hill Apartments, was acquired in 2007 for $26,000,000.
