A student housing property near UCLA has secured $11 million in financing.
The property, dubbed Ophir Terrace, is at 11090 Ophir Drive. It has 85 beds, according to CoStar Group Inc., and is owned by California-based investors.
Berkadia’s Charles Christensen, Vincent Punzi and Lowell Takahashi secured the financing.
Berkadia is a joint venture of Berkshire Hathaway and Jefferies Financial Group Inc.
The interest-only financing was a 10-year fixed Fannie Mae Student Housing cash-out refinance.
“The borrower’s proven track record allowed us to overcome the current student housing risks,” Takahashi said in a statement. “We were able to guide our first-time agency borrower throughout the loan process and successfully closed the cash-out refinance at better terms than the April application during challenging times.”
Ophir Terrace was built in 2014 and is walkable to UCLA’s campus.
Student housing has been a high-demand asset type for investors. Annual student housing investment volume has more than tripled since 2014 to $11 billion a year, according to a report from CBRE Group Inc.
Much of that investment has come from portfolio sales.
CBRE found that limited supply and more international students have furthered demand.
Most large universities, the group found, can house fewer than a quarter of its students on campus.
It is unclear to what degree UCLA will be open in the fall — Cal State and University of California students are expected to take at least some of their classes online, representatives have said.
West Los Angeles is one of the most desirable markets in Los Angeles for multifamily units, including student housing.
During the first quarter of 2020, West L.A. was the most expensive submarket in the county, with rents of nearly $3,000, up 1.5% over the previous year, according to data from CBRE.
The vacancy rate during the quarter was 3.81%.
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