StackSource recently arranged its largest financing deal to date – a $58.76 million senior loan for a new off-campus student housing project at a major university in Texas. The deal brings StackSource’s all-time lending volume past $450 million.

Project financing and planning for this project began prior to the pandemic. The sponsor raised $15 million in 2019. Amid the market uncertainty in 2020, the deal was delayed for several months until confidence was restored in students’ ability to return to campuses.

Now with intense student housing demand, some colleges are converting common areas into dorms, increasing the number of students per room and even incentivizing students with perks such as ski passes or cash if a student chooses to live off-campus.

“Savvy CRE investors knew the student housing market would inevitably rebound, which became even more apparent with the boom in multifamily,” said Beth Mercante, senior vice president–business development at StackSource. “Despite students’ rush to get out of the house and return to in-person learning, workforces remained primarily remote and business travel remained restricted.”