The seven-story property is expected to open prior to the 2019-2020 school year. (Photo: Business Wire)
ORIX Real Estate Americas (ORIX) announced the closing of a $28 million construction loan for the development of a Class “A” student housing project located within blocks of The University of Texas at Austin. Expected to open prior to the 2019-2020 school year, the property will house 66 units and 236 beds. Construction began in April 2018.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180522005432/en/
“This was an excellent opportunity to provide student housing in an area with increasing demand and constrained supply,” said Adam Diamond, Managing Director for ORIX Real Estate Americas and the originator on the transaction. “Historically, the student housing sector has done well in recessionary periods as school enrollment is usually in demand in both a good and struggling economy.”
With a boutique design, the seven-story property is located within the University Neighborhood Overlay (UNO) district on the west side of the campus. This area allows for 175-foot-tall developments to promote higher density and create a pedestrian-friendly neighborhood, while also protecting the nearby single-family residential districts. Situated near numerous restaurants and shops, the development earned a Walk Score—which measures the walkability of an address on a scale of 1 to 100—of 92.
“We look forward to funding more developments in this area and at other universities,” Diamond said.
The first and second stories will consist mainly of communal spaces, such as a cyber lounge, study pods and conference rooms. The residential spaces will be housed on floors three through six, with the seventh floor featuring amenities such as a fitness center and rooftop deck.
This development is the second Class “A” student housing project that ORIX has funded in close proximity to The University of Texas at Austin.
“Because we invest our own capital, ORIX offers greater flexibility to borrowers, such as non-recourse construction and bridge loans with higher leverage, prepayment options and flexible terms,” Diamond said. “The three- to five-year loans are appealing, as developers are allowed to construct and stabilize the asset within the loan term. ORIX’s origination, underwriting, asset management and investment committees are all located in Dallas, which enables quick, reliable decision-making and superior customer service.”
ORIX Real Estate Americas
ORIX Real Estate Americas is a fully integrated commercial real estate finance, asset management and investment company which provides a wide variety of loans and securities backed by both traditional and specialized property types, including self-storage, hospitality, healthcare and more. ORIX Real Estate Americas is a business unit of ORIX Corporation USA (ORIX USA), a Dallas-based financial services firm that has been providing innovative capital solutions that clients need to propel their business to the next level since 1981. With over 900 employees spanning more than 30 offices across the U.S. and Brazil, ORIX USA and its family of companies have $57 billion of assets under management, administration and servicing (including $8.6 billion held by the company and its subsidiaries). Its parent company, ORIX Corporation, is a Tokyo-based, publicly owned international financial services company with operations in 38 countries and regions worldwide. ORIX Corporation is listed on the Tokyo (8591) and New York Stock Exchanges (IX). For more information on ORIX Real Estate Americas, visit www.orix.com.