Seven Hills Realty Trust Closes $31.2 Million Bridge Loan to Finance the Acquisition of a Student Housing Property Near Texas State University
Seven Hills Realty Trust (SEVN) has closed a $31.2 million first mortgage floating rate bridge loan to finance the acquisition of The Lodge, a student housing property near Texas State University. The property features 696 beds across 258 units and is located near the 40,000-student campus in San Marcos, Texas.
The loan structure includes a three-year initial term with two one-year extension options, subject to borrower requirements. The transaction was facilitated by Walker & Dunlop, which advised the sponsor, Palladius Capital Management. SEVN's manager, Tremont Realty Capital, continues to focus on expanding its presence across key asset classes while seeking attractive risk-adjusted returns for shareholders.
Seven Hills Realty Trust (SEVN) ha chiuso un prestito ponte a tasso variabile di 31,2 milioni di dollari per finanziare l'acquisizione di The Lodge, una proprietà di student housing vicino alla Texas State University. La proprietà dispone di 696 letti in 258 unità ed è situata vicino al campus di 40.000 studenti a San Marcos, Texas.
La struttura del prestito prevede un termine iniziale di tre anni con due opzioni di estensione di un anno, soggette ai requisiti del mutuatario. La transazione è stata facilitata da Walker & Dunlop, che ha consigliato lo sponsor, Palladius Capital Management. Il manager di SEVN, Tremont Realty Capital, continua a concentrarsi sull'espansione della sua presenza in classi di attivi chiave, cercando rendimenti attraenti corretti per il rischio per gli azionisti.
Seven Hills Realty Trust (SEVN) ha cerrado un préstamo puente a tasa flotante de 31.2 millones de dólares para financiar la adquisición de The Lodge, una propiedad de vivienda estudiantil cerca de la Universidad Estatal de Texas. La propiedad cuenta con 696 camas en 258 unidades y está ubicada cerca del campus de 40,000 estudiantes en San Marcos, Texas.
La estructura del préstamo incluye un plazo inicial de tres años con dos opciones de extensión de un año, sujeto a los requisitos del prestatario. La transacción fue facilitada por Walker & Dunlop, que asesoró al patrocinador, Palladius Capital Management. El gerente de SEVN, Tremont Realty Capital, continúa enfocándose en expandir su presencia en clases de activos clave mientras busca rendimientos ajustados al riesgo atractivos para los accionistas.
세븐 힐스 리얼티 트러스트 (SEVN)는 텍사스 주립대학 근처의 학생 주택인 The Lodge의 인수를 위해 3,120만 달러의 변동 금리 최초 모기지 브릿지 대출을 완료했습니다. 이 부동산은 258개 유닛에 696개 침대를 갖추고 있으며, 텍사스주 샌 마르코스에 있는 4만 학생의 캠퍼스 근처에 위치해 있습니다.
대출 구조에는 대출자의 요구 사항에 따라 1년 연장 옵션 2개가 포함된 3년의 초기 기간이 포함됩니다. 이 거래는 후원자인 Palladius Capital Management에 자문을 제공한 Walker & Dunlop에 의해 관리되었습니다. SEVN의 매니저인 Tremont Realty Capital은 주요 자산 클래스 전반에 걸쳐 존재감을 확장하고 투자자에게 매력적인 위험 조정 수익을 추구하는 데 계속 집중하고 있습니다.
Seven Hills Realty Trust (SEVN) a clôturé un prêt hypothécaire flottant de 31,2 millions de dollars pour financer l'acquisition de The Lodge, une propriété de logement étudiant près de l'Université d'État du Texas. La propriété dispose de 696 lits dans 258 unités et est située près du campus de 40 000 étudiants à San Marcos, Texas.
La structure du prêt comprend une durée initiale de trois ans avec deux options d'extension d'un an, sous réserve des exigences de l'emprunteur. La transaction a été facilitée par Walker & Dunlop, qui a conseillé le sponsor, Palladius Capital Management. Le gestionnaire de SEVN, Tremont Realty Capital, continue de se concentrer sur l'expansion de sa présence dans des classes d'actifs clés tout en recherchant des rendements ajustés au risque attrayants pour les actionnaires.
Seven Hills Realty Trust (SEVN) hat ein 31,2 Millionen Dollar schweres erstes Hypothekendarlehen mit variablem Zinssatz geschlossen, um den Erwerb von The Lodge, einer Studentenwohnimmobilie in der Nähe der Texas State University, zu finanzieren. Die Immobilie verfügt über 696 Betten in 258 Einheiten und liegt in der Nähe des 40.000 Studenten umfassenden Campus in San Marcos, Texas.
Die Darlehensstruktur beinhaltet eine dreijährige Anfangslaufzeit mit zwei einjährigen Verlängerungsoptionen, die an die Anforderungen des Kreditnehmers gebunden sind. Die Transaktion wurde von Walker & Dunlop facilitated, das den Sponsor, Palladius Capital Management, beraten hat. SEVNs Manager, Tremont Realty Capital, konzentriert sich weiterhin darauf, seine Präsenz in wichtigen Anlageklassen auszubauen und gleichzeitig attraktive risikoadjustierte Renditen für die Aktionäre zu erzielen.
- Secured $31.2 million in new loan revenue opportunity
- Strategic expansion into student housing market near large university
- Flexible loan terms with extension options
- None.
Insights
The
The loan's structure with a three-year initial term plus two one-year extension options offers both security and adaptability. The 696-bed capacity translates to a loan amount of approximately
For SEVN's portfolio, this deal helps diversify their asset mix while maintaining exposure to the relatively recession-resistant student housing sector. The partnership with established players like Walker & Dunlop and Palladius Capital Management adds credibility to the transaction's underwriting quality.
The student housing sector presents unique opportunities in the current market environment. Texas State University's substantial student population creates a built-in demand driver for this property. San Marcos, positioned within the dynamic Austin-San Antonio corridor, has seen consistent growth, with student housing occupancy rates typically outperforming traditional multifamily properties.
Recent market data indicates strong fundamentals in the student housing sector, with many universities experiencing enrollment growth and housing shortages. For SEVN, this loan represents an opportunity to capitalize on these trends while maintaining a senior position in the capital stack. The floating rate structure is particularly advantageous in the current market, allowing returns to adjust with interest rate movements.
The loan structure incorporates several risk-mitigating elements. The floating rate nature provides protection against interest rate risk, while the extension options offer flexibility for both lender and borrower. The property's location near a major state university provides a stable demand base, reducing vacancy risk.
The involvement of established firms like Walker & Dunlop in the transaction adds an extra layer of due diligence comfort. Student housing properties near large state universities have historically demonstrated resilience during economic downturns, as enrollment often increases during challenging economic periods. The
The loan has a three-year initial term with two one-year extension options, subject to the borrower meeting certain requirements. SEVN’s manager, Tremont Realty Capital, was introduced to the transaction by Walker & Dunlop, which advised Palladius Capital Management, the sponsor.
Tom Lorenzini, President and Chief Investment Officer of SEVN, made the following statement:
“We continue to identify and close compelling loan investment opportunities, such as this loan for the acquisition of The Lodge, a student housing community near Texas State University. With an active pipeline of quality opportunities, SEVN is committed to further expanding its presence across key asset classes and generating attractive risk adjusted returns for its shareholders.”
About Seven Hills Realty Trust
Seven Hills Realty Trust (Nasdaq: SEVN) is a real estate finance company focused on originating and investing in first mortgage loans secured by middle market transitional commercial real estate. SEVN is managed by Tremont Realty Capital, an affiliate of The RMR Group (Nasdaq: RMR), a leading
WARNING CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These statements may include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “will,” “may” and negatives or derivatives of these or similar expressions. These forward-looking statements include, among others, statements about SEVN’s ability to identify and close compelling loan investment opportunities, SEVN’s commitment to expanding its presence across key asset classes, as well as SEVN’s investment focus, ability to complete additional loan investments in the future and ability to generate attractive risk adjusted returns for shareholders. Forward-looking statements reflect SEVN’s current expectations, are based on judgments and assumptions, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause SEVN’s actual results, performance or achievements to differ materially from expected future results, performance or achievements expressed or implied in those forward-looking statements. Some of the risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: the ability of SEVN to make additional investments; the success of SEVN’s investments; SEVN’s available liquidity, access to capital and cost of capital; and various other matters. These risks, uncertainties and other factors are not exhaustive and should be read in conjunction with other cautionary statements that are included in SEVN’s periodic filings with the Securities and Exchange Commission, or SEC. The information contained in SEVN’s filings with the SEC, including under the caption “Risk Factors” in its periodic reports, or incorporated therein, identifies important factors that could cause SEVN’s actual results to differ materially from those stated in or implied by SEVN’s forward-looking statements. SEVN’s filings with the SEC are available on the SEC’s website at www.sec.gov. You should not place undue reliance upon forward-looking statements. Except as required by law, SEVN does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
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Timothy Bonang, Senior Vice President
(617) 231-3223
www.sevnreit.com
Source: Seven Hills Realty Trust
FAQ
What is the value of SEVN's recent student housing loan near Texas State University?
How many beds and units does The Lodge student housing property financed by SEVN have?
What are the terms of SEVN's bridge loan for The Lodge student housing property?
Who is the sponsor for The Lodge student housing property financed by SEVN?
How many students attend Texas State University near SEVN's newly financed property?
