Despite a challenging capital markets climate, Champion Real Estate Company (Champion), announced that it has refinanced Victory on Portland, a 55 unit/139-bed student housing property located at 2353 Portland Street in Los Angeles California for $16.1 million. The company secured the long-term, fixed rate financing through Wintrust Bank. The refinance comes after an active 2022 when Champion acquired over 1,500 beds nationally at four different universities.
Champion purchased the property, which, at acquisition, consisted of 47 units/102-beds in March of 2020 for $14.1 million. Champion’s original business plan was to complete a $2 million renovation of the existing improvements 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 due to the pandemic as nearby universities transitioned to remote learning and the local government instituted strict tenant protections. Champion was able to successfully navigate these obstacles and complete the planned renovations. Further, Champion identified a state law which permitted increased density at the property and successfully received approvals and constructed an additional 8 units/37 beds at the property, greatly increasing the value of the asset.
“Victory on Portland is a terrific example of the value potential in renovating dated properties that are walking distance to Tier 1 universities.” said Parker Champion, Chief Operating Officer with Champion Real Estate Company. “Despite a challenging capital markets environment, we were able to close very accretive financing due to the value we have added since acquisition.”
