The Element’s Pedestrian Location is Key for Financing

Strong demand for student housing led to the $26.92 million in financing for the acquisition of The Element Communities, four student housing assets totaling 186 units and 383 beds in Eugene, OR. The boutique communities built between 2010 and 2012 are located within walking distance to the University of Oregon campus along with shopping, restaurant and entertainment options in downtown Eugene.  

The seven-year term advance is an addition to the borrower’s existing structured credit facility with CBRE’s Fannie Mae delegated underwriting and servicing program and CBRE Multifamily Capital Inc. With a 2.61 percent floating rate and seven-year term, the financing features full-term interest-only payments and a flexible prepayment structure.

Ben Roelke and Ian Walker in CBRE’s Dallas office arranged the financing on behalf of a programmatic joint venture between Cardinal Group Investments, a large student housing operator, and a private equity real estate fund managed by TPG Real Estate Partners.

“The strong demand for student housing in the Eugene multifamily market and pedestrian location of these assets near the University of Oregon was very attractive to lenders,” said Roelke. “These attributes, combined with the borrower’s strong credit facility relationship, produced attractive financing terms for a well-positioned portfolio.”