Student Housing Daily - February 25 - Capstone Communities secures $76 million in construction financing

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NEWS ROUNDUP

FINANCING: Capstone secures $76 million in construction financing. Capstone Collegiate Communities has secured a $75.5 million construction loan from Cadence Bank for the development of a 165-unit, 532-bed student housing community in Tucson, AZ The project, which also received equity financing from an insurance company in a deal arranged by TSB Capital Advisors, is set to be completed by fall 2027, ahead of the academic year. The site was previously home to five historic homes, which were relocated to another location before Capstone acquired the land for $10.2 million in March 2024, according to public records.

FINANCING: Black Bear Capital arranges $7.65 million refi. Black Bear Capital (BBCP) has closed a $7.65 million for the refinance of a 154-bed property serving the University of Georgia. BBCP’s Matt Stearns, Zach Lutwak-Fitzgerald, and Michael Bernstein arranged the financing.

FINANCING: Cushman & Wakefield arranges $8.3 million LP equity investment. Cushman & Wakefield has arranged an $8.3 million LP equity investment for the development of a 241-bed asset in Champaign, IL. CushWake’s Kristian Brown, Susan Tjarksen, Brendon Urban, Travis Prince, Shawn Lubic, and Victoria Marks Vagnier arranged the investment.

DEVELOPMENT: Oregon Institute of Technology to construct $35 million residence hall. The Oregon Institute of Technology in Klamath Falls, Oregon, has announced the construction of a $35 million mass timber residence hall, designed to provide on-campus housing for 517 students. The 86,710-square-foot, four-story building aims to address the university’s growing student housing needs, with completion expected by December 2025.

DEVELOPMENT: USF pauses dorm replacement project. The University of South Florida (USF) has halted plans to redevelop its oldest dormitories in favor of focusing on the redevelopment of The Claw golf course. The university had initially planned to replace Kosove Apartments, Beta Hall, and Betty Castor Hall—three aging dormitories built in the 1960s—with nine new buildings offering 2,100 beds, more than doubling the existing 900-bed capacity. However, those plans are now on hold as USF prioritizes the Fletcher Parcel Project.

READ: Top schools for student housing transactions in 2024.

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