Grandbridge Real Estate Capital recently closed a $22.3 million first mortgage loan secured by a 169-unit/496-bed Class-A student housing property to be built in Vermillion, South Dakota, near the University of South Dakota.
The development/construction financing was originated by Minneapolis-based Vice President Brett Olson for a repeat borrower.
The construction/mini perm loan was funded through one of Grandbridge’s banking relationships and featured a five-year term with two years of interest-only, followed by a 30-year amortization. The loan closed with a fixed interest rate in the low 5 percent range.
The property consists of nine apartment buildings with a clubhouse. The units will feature new modern finishes, balconies, and spacious units for students. In addition, the clubhouse and common amenities will include: an outdoor hot tub, outdoor basketball court, workout facility, sand volleyball, tanning, coffee bar and lounge, as well as a game room. The students will enjoy a well located property within walking distance to campus.