In the midst of a challenging capital markets climate, Champion Real Estate Co. has refinanced Victory on Portland, a 55-unit, 139-bed student housing property located at 2353 Portland St. in the USC area, for $16.1 million.
The Santa Monica-based company secured the long-term, fixed-rate financing through Wintrust Bank.
Champion purchased the property — which, at acquisition, consisted of 47 units with 102 beds — in March of 2020 for $14.1 million. Champion’s original business plan was to complete a $2 million renovation, which included upgrading the mechanical systems, renovating the interior units, enhancing curb appeal, increasing the amenity package and a general rebranding of the property. That plan was delayed because of the pandemic as nearby universities transitioned to remote learning and the local government instituted strict tenant protections. Additionally, Champion identified a state law that permitted increased density at the property and successfully received approvals and constructed an additional eight units with 37 beds at the asset, increasing its value.
“Victory on Portland is a terrific example of the value potential in renovating dated properties that are walking distance to Tier 1 universities,” Parker Champion, chief operating officer with Champion Real Estate Co., said in a statement. “Despite a challenging capital markets environment, we were able to close very accretive financing due to the value we have added since acquisition.”
Champion has steadily built a student housing portfolio, including the addition of more than 1,500 additional beds at four universities last year. In October, Champion made its first investment in the North Carolina market with the $43-million acquisition of Villages at Wake Forest, a 62-parcel, 75-unit portfolio featuring a mix of single-family homes and duplexes across the Wake Forest University campus.
