Friday, April 26, 2013

Beech Street Closes $17 Million Fannie Mae Loan to Refinance Portfolio of 19 Student Apartment Complexes in Tuscaloosa, AL


College Station student houseing porffolio
Tuscaloosa, AL
BETHESDA, MD – Beech Street Capital, LLC announced it closed a $17 million Fannie Mae Dedicated Student Housing loan to refinance the College Station Portfolio, which consists of 264 units in nineteen properties owned by ROAR, LLC, in Tuscaloosa, Alabama.

Chad Thomas Hagwood
Chad Thomas Hagwood, executive vice president of loan originations for Beech Street, originated the loan, and Brandon E. Pate managed the transaction.

 “The College Station Portfolio was an excellent fit for Fannie’s Dedicated Student Housing program,” notes Hagwood.  

“ROAR has a proven track record with student properties, and the properties themselves, within walking distance of campus, are in very high demand with University of Alabama students.” 

 The properties typically operate at 99 percent occupancy. The interest rate on the loan was in the low four percent range.

 The complexity of the portfolio, with 19 properties built between 1920 and 1992 clustered in three groups around the campus, proved no obstacle to Beech Street’s team.  “The hallmark of the Beech Street approach is our ability to adapt to our borrowers’ circumstances,” Hagwood notes.

University of Alabama, Tuscaloosa, AL
 The Tuscaloosa apartment market is dynamic and very active, fueled by the dramatic growth of the University of Alabama over the past ten years and the redevelopment that has occurred in the wake of the devastating tornadoes that hit the city in April 2011, including a multi-million dollar downtown urban renewal project. 

 The fixed-rate loan has a 10-year term and 9.5 years of yield maintenance with 30 years of amortization, payable on an actual/360 basis.

For a complete copy of the company’s news release, please contact:

Courtney Lewis
 240-507-1948 or
Jenifer Bernardi

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