Newmark Secures $47.5 Million in Financing for Student Housing Asset Serving the University of Missouri

October 24, 2024 1:00 PM

Newmark announces it has arranged $47.5 million in financing for Collective at Columbia, a 318-unit, 972-bed student housing asset serving the University of Missouri (Mizzou) in Columbia, Missouri.

The Newmark Multifamily Capital Markets team secured the five-year, fixed-rate, full-term, interest-only loan through a life company to finance the acquisition and light capital improvements for the property. Executive Managing Director Ben Roelke and Senior Managing Director Ian Walker, leaders of the National Student Housing Financing platform, facilitated the loan on behalf of the borrower, a joint venture between The Preiss Company and a private equity real estate fund advised by Crow Holdings Capital. The property was acquired from Aspen Square Management. The non-recourse loan features low fixed-rate pricing at 5.56% and a flexible prepayment structure, with the ability to lock in an early rate at term execution.

"As the interest rate environment enters a new cycle, it's critical to create a competitive environment amongst a wide variety of lenders to secure best terms and certainty of closing," said Roelke. "Debt conditions continue to evolve more favorably, and there is deep liquidity for high-quality transactions backed by best-in-class sponsorship, as demonstrated by Collective at Columbia."

Delivered in 2013, Collective at Columbia provides residents with abundant amenities to promote academic, social and physical well-being, including a resort-style pool, yoga studio, 24-hour fitness center, academic success center, game room and off-leash dog park. The capital upgrades program will feature unit interior updates, exterior improvements and clubhouse renovations to complement the property's top-tier community facilities and large-scale floor plans. The property boasts strong fundamentals with a 99.5% occupied for the 2024-2025 academic year and an impressive 12.3% rent growth over the 2023-2024 academic year.

Located at 3600 Aspen Heights Parkway, Collective at Columbia is just minutes from the Mizzou campus and proximate to ample retail, restaurants and entertainment venues in Downtown Columbia. The property also offers a complimentary shuttle with direct transportation to campus.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of June 30, 2024, Newmark's company-owned offices, together with its business partners, operate from approximately 170 offices with 7,800 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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