Project name
University Landing (FULLY FUNDED)
Location
University Avenue, Clarksville, Tennessee, USA
Initiator
REALIANCE USA B.V.
Local partner
Property manager
In-house: Asset Campus Housing
Category
157 apartments, 381 student rooms with value-add potential
Expected investment term
Four years
Exit strategy
Sale to an (end) investor
Total investment
US$ 23,931,879
Bank loan
US$ 12,675,000
Equity Project LP US$ 11,256,879
– Mezzanine T2 Investments US$ 2,880,721
– CRA/T2 Investments US$ 1,622,030
– University Landing Capital LP US$ 6,754,128
Equity University Landing Capital LP US$ 6,900,000
– Participation University Landing LP US$6,754,128
– Costs Capital LP US$145,872
Structure
Participation directly or through separate LLC in University Landing Capital LP
Participation
From US$ 125,000 excl. 3% emission costs
Distribution
8% after two years
Projected gross total return
68.1% after four years
Projected gross return
17% per year (ROI)
Unique selling points
University Landing is the sixth proposition offered by REALIANCE in partnership with Campus Realty Advisors (CRA). CRA is highly experienced in managing, optimizing and developing student housing. Following the positive results in student housing propositions, expansion of the REALIANCE portfolio in this real estate category is therefore an important strategic decision.
The University Landing complex, consisting of 157 apartments with 381 student rooms, is located within walking distance of the more than 200-year-old Austin Peay State University and Downtown Clarksville. The university has been educating approximately 10,000 students per year in recent years.
The supply of student housing in Clarksville is well below demand; available on-campus student housing and purpose-built student housing covers only about 25% of the demand for student rooms. In addition, an investment in student housing is less sensitive to cyclical fluctuations because this category is less affected by economic trends.
The projected gross total return is 68.1% over a four-year term, being 17.0% per year.
For more information you can reach REALIANCE at +31 (0) 20 21 03 180 or invest@realiance.nl.
