Done Deals: HFF secures $52 million in acquisition financing for student housing communities serving The University of North Texas and Texas Tech University

Thursday, January 26, 2012

HFF secures $52 million in acquisition financing for student housing communities serving The University of North Texas and Texas Tech University

INDIANAPOLIS, IN – HFF announced today that it has secured acquisition financing totaling $52 million on behalf of The Scion Group and Arch Street Capital Advisors.

The acquired properties were The Retreat at Denton (top right photo) and The Retreat at Lubbock (top left photo), Class A, cottage-style student housing communities serving The University of North Texas (lower right photo) in Denton and Texas Tech University (lower left photo) in Lubbock.

Upon acquisition The Scion Group rebranded the properties to The Republic at Denton (www.republic-denton.com) and The Republic at Lubbock (www.republic-lubbock.com).

HFF placed the five-year, interest-only securitized loans with Freddie Mac’s (Federal Home Loan Mortgage Corporation) CME Program. An $18.18 million, fixed-rate loan was arranged for The Republic at Denton and a $34.02 million, fixed-rate loan was arranged for The Republic at Lubbock. The loans will be serviced by HFF through its Freddie Mac Program Plus® Seller/Servicer program.

Completed in fall 2011, The Republic at Denton has 125 units with 492 beds that are 97 percent occupied. Community amenities include a clubhouse, saltwater pool, outdoor volleyball court, theater and gaming room, horseshoe pit, basketball court, fitness center, bbq grills, tanning beds, poker room, music studio and clubroom with foosball and pool tables. The property is situated on 14.97 acres at 500 Inman Street about one mile south of The University of North Texas campus.

The Republic at Lubbock has 218 units/853 beds in two-, three-, four- and five-bedroom layouts.

The 98 percent leased property opened in the fall of 2011 and offers residents a clubhouse, fitness center, pool, volleyball court, poker room, movie theatre, golf simulator, horseshoe pit, putting green, basketball court, tanning beds and a pet-friendly community.