BWE, a national commercial and multifamily mortgage banking company, announced that it has secured $47,000,000 in financing for Lakemoor Station, a newly constructed student housing development that serves students at the University of Tennessee, Knoxville.
Jim Collins, executive vice president in BWE’s Knoxville office, originated the financing from Nationwide Insurance on behalf of Dominion Group, Knoxville’s premier multifamily developer and a long-time client of BWE. The loan has a 10-year fixed term with a 30-year amortization period.
“When the University of Tennessee and Dominion Group came to an agreement to master lease Lakemoor Station, it created an interesting challenge – when the initial five-year lease-term expires, the project could find itself having to go through an entire lease-up in the middle of its loan term. To ensure Dominion has the resources to potentially go through lease-up, we worked hard to structure a deal that allowed our client a reserve fund that can be utilized if the building transitions from student to traditional housing,” said Collins. “At BWE, we’re proud to work closely with all our clients to overcome financing challenges and secure loans that allow them to execute on their long-term business plans.”
To fill the student housing deficit caused by rapidly rising applications and enrollment, the University of Tennessee has master leased Lakemoor Station for five years with a three-year renewal option. Since the master lease agreement will expire during the loan’s 10-year term, BWE and Dominion structured an escrow account for use during a potential lease-up after the master lease ends.
Lakemoor Station is a 240-unit Class A garden-style apartment community located along Maloney Road at U.S. Hwy 129 in South Knoxville, about 3.5 miles south of the University of Tennessee. The fully furnished apartments offer student residents a wide range of amenities, including dressers, desks, and in-unit washers and dryers. The building itself includes amenities such as an outdoor pool and lounge area, a fitness center, and a clubhouse with lounge area.
BWE stands as a national, full-service commercial and multifamily mortgage banking company committed to elevating real estate financing. Putting clients’ goals first, our experienced and trusted advisors offer comprehensive capital solutions by combining enduring debt and equity relationships with unparalleled local market insights across our 40+ offices and national servicing platform.
