Mike Davis, one of our Principals in the LA office, arranged the financing of a $44 million construction loan for a mixed-use student housing development directly across from the University of Nevada, Las Vegas (UNLV). The property, The Village, will feature over 200 units and 600 beds of purpose-built, student housing units, various modern courtyards, a pool, gym, and various other social amenities all fit to cater to its student tenants. Located on a 3.67 acre site, the subject property is in a prime location across the street from UNLV’s main campus and near the intersection of Tropicana Avenue and Maryland Parkway- two of the busiest streets in Las Vegas.
The loan was made with one of our life insurance companies to provide developers RedBridge Capital and Future Land Holdings with a 2-year term for construction that converts into a permanent 5 year term thereafter.
The loan was competitively priced and the project carried a total cost of approximately $60 million, with the lender willing to loan 75% of the borrower’s overall project cost.
RedBridge Capital, based in LA, has a successful track record with similar student housing projects in the past. RedBridge Capital has investments involving student housing in Texas, Oklahoma, Arizona, Las Vegas, and near the University of Southern California in Los Angeles.
Why did we do this deal?
In the current construction loan environment, banks have not been able to be as aggressive as they have been in the past in terms of loan to cost because of the Basel III recommendations implemented in 2009. Life insurance companies aren’t subject to the same kind of regulations, allowing them to step into that market with greater success with the opportunity to increase market share and select higher quality transactions.