The Gathering at Salisbury: Student Housing Property

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
The Gathering

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