Channing Realty Advisors LLC and The Orlean Co. have acquired a 100-unit, 400-bedroom, purpose-built student housing development.
While transaction terms, and the name and location of the property and school were not disclosed, BGL Real Estate Advisors, which served as the exclusive financial adviser to the two companies in the deal, stated in its release that the property was built in 2008 to capture off-campus housing demand for students enrolled at a midsize state university.
It was acquired to employ a modest value-add strategy intended to address deferred maintenance and unit upgrades, as well as expand project amenities including the fitness center, fire pits, outdoor kitchen, gazebo, dog run and more. The project capitalization included a senior acquisition loan provided from Key Bank, preferred equity, common equity and sponsor equity.
BGLREA assisted Channing and Orlean with the structuring and raising of the preferred, common and sponsor equity tranches. Channing is led by David A. Kornbluth, founder and president. Orlean is led by President David B. Orlean.