Student housing property in Blacksburg gets $48 million loan
The Richmond office of Berkadia recently arranged a $48 million loan for The Edge Apartment Homes, a newly constructed, Class A student housing property in Blacksburg.
Senior Managing Director John M. R. Reed of the Richmond office worked with the borrower, Related Properties I LLC, an affiliate of Campus Management Group (CMG), to secure the financing through a life insurance company. The 20-year, fixed-rate loan features a 4 percent interest rate.
“The timely delivery of this project helped the borrower to meet the growing demand for student housing in Blacksburg and represents one of our team's largest student housing transactions,” Reed said in a statement. “We were able to lock in a favorable interest rate early in the underwriting process, and CMG created an impressive asset worthy of these appealing loan terms.”
The Edge Apartment Homes, located at 321 Edge Way, offers housing for Virginia Tech students and is currently 100 percent occupied. The 252-unit, property features two-, three- and four-bedroom apartments and townhomes. Units come fully furnished with all utilities including a washer and dryer.
Community amenities include high speed internet, a fitness center, yoga room, student center, heated swimming pool, picnic and BBQ area and two-story club house.
Berkadia, a joint venture of Berkshire Hathaway and Leucadia National Corp., provides capital solutions and investment sales advisory and research services for multifamily and commercial properties.