Greystone Lends $38M on North Carolina Apartments Near Duke University
By Andrew Coen August 12, 2021 12:15 pm
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Magma Equities has secured a $38.2 million bridge loan for its acquisition of a multifamily development close to Duke University in Durham, N.C., Commercial Observer can first report.
Greystone supplied the debt package for Magma’s University Apartments, which includes a 30-month term with two six-month extensions. Magma, a multifamily investment firm, purchased the 199-unit complex for $42.4 million in a joint venture with Viking Partners.
The bridge loan was originated by Justin Hechler, vice president at Greystone.
“This property represents a fantastic opportunity for the sponsor to expand the existing tenant base in a region that’s experiencing population growth and increased apartment rental interest by young professionals and the workforce at large,” Hechler said in a statement.
Located at 700 Ryan Court, the property was built in several phases between 1938 and 1984, and includes two outdoor swimming pools. Roughly 60 percent of University Apartments tenants are students affiliated with Duke University, which is a mile away.
Manhattan Beach, Calif.-based Magma said it intends to broaden the tenant mix over time into a more traditional multifamily asset.
“Greystone’s bridge program is attractive because it offers a number of permanent exit options that will enable the property to be set long-term, and enable us to provide a renewed living experience for existing and new tenants,” Magma Equities Managing Principal Ryan Hall said in a statement.
Andrew Coen can be reached at acoen@commercialobserver.com.
