A student housing portfolio adjacent to Lehigh University in Bethlehem, Pennsylvania — Courtesy: Progress Capital
By Joshua Burd
Progress Capital has arranged $16 million in financing for a client to acquire a 219-bed, multisite student housing portfolio near Pennsylvania’s Lehigh University.
In a news release Friday, the Tinton Falls-based firm said Ladder Capital is providing the nonrecourse financing, which has a 75 percent loan-to-value ratio, three years of interest only and a fixed rate of 4.75 percent for 10 years based on a 30-year amortization. The portfolio is adjacent to the Bethlehem university, Progress said, noting that student housing is known to be recession-resilient and offers greater stability than other asset classes.
The firm added that the property is situated between a mountain and the Lehigh River, meaning there is little room for new construction. Its new owner now aims to use advances in technology and professional management to grow and professionalize the off-campus student housing portfolio, which has been traditionally operated as a mom-and-pop business.
Progress did not disclose the addresses of the buildings.