Facility Highlights
- Student Housing Project located in Salisbury, MD
- Strategically located minutes away from a Division 2 university with an enrollment of less than 10,000 students
- Located in a tertiary market
- 50 units, 200 bed townhouse apartment complex
Transaction Summary
- The seller had made attempts to sell the property but had not succeeded, despite being previously under contract
- Financing for student housing properties was challenging because of mounting loan delinquencies on Freddie Mac and Fannie Mae student housing loans
- After one buyer failed to close because their equity partner left them, SVN|Angelic negotiated a short-term contract extension with the buyer in exchange for the buyer releasing the deposit money to the seller, avoiding a prolonged earnest money dispute when the same buyer continued to fail to close
- SVN|Angelic sourced a new buyer was able to convince Fannie Mae to transfer the loan application to the new buyer
- SVN|Angelic achieved over $16 million in proceeds for the seller, the highest per bed sale price in the market’s history
Key Benefits
- SVN|Angelic was able to facilitate a successful deal near a university with enrollment of less than 10,000 students (a key market hurdle)
- We helped the seller avoid a dispute over the first buyer’s deposit
- SVN|Angelic was able to transfer the loan application to the new buyer even though the lender was no longer pursuing student housing loans, which allowed us to negotiate a better price with the new buyer
- SVN|Angelic was able to close the deal without a price adjustment, despite the property’s underperformance in pre-leasing during the transaction