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Debt & Equity

Walker & Dunlop provided $617M in student housing loans in 2015

Walker & Dunlop announced that it originated $617 million in loans backed by student housing properties in 2015.

Photo by Keith Cooper/ Flickr
Photo by Keith Cooper/ Flickr

With a growing percentage of high school graduates choosing to pursue higher education, steady growth in college enrollment over the next several years is expected in the United States, which will drive the demand for student housing across the country.

This expectation of increased demand combined with strong occupancy trends make student housing an attractive option for borrowers looking to deploy capital in the commercial real estate space.

As a sub-sector of multifamily housing, student housing financing requires specialized knowledge of the evolving market trends facing owners and operators of these properties that cater to college-age residents with very specific demands.

Walker & Dunlop’s President, Howard W. Smith stated, “Walker & Dunlop has decades of experience financing student housing properties and in-depth knowledge of student housing markets throughout the country.

“This market is everchanging to meet the increasing demand for off-campus student housing and it’s vital that borrowers are aware of the current trends in this sector. Walker & Dunlop’s experienced originators understand the unique financing requirements and options available to borrowers in the student housing space, which allows our team to structure optimal financing to meet the needs of our borrowers.”

Recent student housing financings by Walker & Dunlop include:

Collegetown Terrace Ithaca, New York

  • $55.9 million Fannie Mae loan for a student housing complex in close proximity to Cornell University
  • The borrower was able to complete development of the property using a one-year bridge loan provided by Walker & Dunlop’s Interim Loan Program
  • Walker & Dunlop subsequently arranged permanent financing for the property in the form of a ten-year, fixed rate Fannie Mae loan Domain at Tempe

Tempe, Arizona

  • $48.8 million Fannie Mae acquisition loan for a dedicated student housing property serving students at

Arizona State University, the largest university in the US

  • Student housing occupancy in the Tempe, Arizona sub-market averaged 98.3% at the time the loan was underwritten, demonstrating the strong demand for student housing in this area Tetro Student

Village San Antonio, Texas

  • $24.0 million Freddie Mac acquisition loan for a development located 0.5 miles from the University of Texas at San Antonio
  • This newly-constructed property features amenities like a bocce ball court, dog park, coffee shop, sports bar, and arcade attractive to students in the area South Campus Apartments Madison, Wisconsin
  • $7.5 million, 6-year loan for a student housing apartment community located near the University of Wisconsin
  • Walker & Dunlop obtained the optimal financing terms for the borrower through life insurance company, PPM Financial, which also financed the student housing property that is adjacent to South Campus Apartments and owned by the same sponsor.

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