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BWE Secures $10M to Acquire UIUC Student Housing Portfolio
BWE, a national commercial and multifamily mortgage banking company, has secured a $10 million preferred equity investment to finance the acquisition of a student housing portfolio near the University of Illinois Urbana-Champaign campus.
Mike Guterman, senior vice president in BWE’s Los Angeles office, originated the deal on behalf of a major East Coast student housing owner and operator. The portfolio consists of a mix of single-family and small multifamily properties, totaling 616 beds across 170 units.
“In this tight financing market, preferred equity can be a powerful option to provide capital to owners and developers,” said Guterman. BWE tapped into the more liquid preferred equity market to fill out the capital stack, which includes a five-year, 60 percent LTC senior loan with a cost ratio from a Midwest regional bank. Acquired from a multigenerational ownership group that had held the properties for 100 years, the sponsor will renovate and redevelop some of the properties to add value to the portfolio.
