Janover Closes $24M Florida Student Housing Deal

Janover has arranged $24.1 million in financing for Oakbrook Walk and Oaks Apartments, a student housing community next to the University of Florida in Gainesville, Fla. Saxum Real Estate and Farallon Capital Management bought the 468-bed fractured condominium property, according to county records. Bank Leumi provided the loan through Janover’s commercial real estate financing platform.

The financing closed at a loan-to-cost ratio of approximately 70%, inclusive of the property’s value and planned capital improvements. The package included $22.3 million for the acquisition and another $1.8 million for renovation work.

“The borrowers’ experience in the sector, combined with the value-add potential of the asset, was key in sourcing competitive loan terms,” said Brad Beattie, director of capital markets at Janover. “Despite the complexities of a fractured condo investment, we were able to lock in a low, fixed interest rate for a non-recourse package.”

Located at 1331 SW 13th St., the property was constructed in the late 80s and includes 234 two-bedroom units. Amenities include three swimming pools, a sports court, and in-unit washers and dryers. Saxum and Farallon intend to renovate all apartments and purchase additional condos as they become available, with the eventual goal of removing the condo association.

Student Housing Passes the Test

The student housing sector has largely moved beyond its turbulent times from the height of the pandemic. Enrollment at universities has recovered, and heightened preleasing going into the 2022 school year reflects the current strength of student housing real estate, according to a third-quarter report from Yardi Matrix.

Investment has followed suit. In the first half of the year, more than $2 billion in deals closed. Even during the height of the pandemic, student housing investment activity stayed robust. Consider TPG Real Estate’s nearly half-billion-dollar opportunistic investment in the sector at the end of 2020.

And even now, as prices per unit have begun to rise, major players are still pulling the trigger on major acquisitions, evidenced by Blackstone’s $13 billion August acquisition of American Campus Communities, the largest student housing owner and developer in the country.