Prospera Growth Fund Nabs $97M Financing Package for Utah Student Housing Asset
Prospera Growth Fund has nabbed a $96.7 million financing package to refinance a student housing asset in Utah, Commercial Observer can first report.
Walker & Dunlop originated the $70.7 million Freddie Mac (FMCC)-backed loan for Prospera’s 1,044-bed Axis Luxury Living project in Orem, Utah. near Brigham Young University and Utah Valley University. The real estate investor also secured $26.9 million of preferred equity from CenterSquare and RCG Longview Company.
“After this concerted effort, we are encouraged by a new term of financing on a trophy asset, and excited about new institutional relationships,” Sean Clark, CEO of Prospera, said in a statement. “This strategic financing underscores Prospera’s commitment to nurture high-value real estate assets in protection of our investors’ principal and equity.”
Evan Kinne, CEO and co-founder of Axcs Capital, said in a statement the transaction underscores the firm’s “expertise in structuring complex deals.”
George Smith Partners’ David Pascale and Evan Kinne arranged the transaction.
Located at 1435 W 800 S, the complex has amenities that include fitness center, multimedia studio, esports lounge,swimming pool, hot tub and movie theater.
Richard Gorsky, managing director at CenterSquare, said in a statement that its preferred equity investment on Axis Living presented a “unique opportunity” to “contribute gap capital for a high-quality, performing rental residential asset.”
George Smith Partners also sourced a $14 million loan from Flagstar Bank for developer Douglas Caraballo to build 98 single-family lots in Homestead, Fla. The deal’s loan-to-cast value was 60 percent and was led by George Smith Partners’ Justin Piasecki.
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