Knighthead Lends $40M on Student Housing Near Indiana Football Stadium

Indiana University has executed another touchdown drive three months after the school’s first college football national title.

University Properties, which operates under the name Varsity Properties, has scored a $39.75 million loan to refinance Stadium Crossing, a 226-unit student housing development directly across from IU’s Memorial Stadium, Commercial Observer can first report. 

Knighthead Funding provided the loan for the 734-bed complex situated steps from where 2025 Heisman Trophy winner Fernando Mendoza led an undefeated season, culminating in Indiana winning a national championship against Miami on Jan. 19. The deal closed fittingly just before Mendoza is slated to be the No. 1 pick in Thursday night’s National Football Leage draft, where he is likely to be chosen by the Las Vegas Raiders. 

“Stadium Crossing’s exceptional location, strong occupancy history, and consistent cash flow made this a very attractive opportunity,” Peter Illuzzi, vice president for loan origination at Knighthead Funding, said in a statement. “We look forward to seeing the borrower continue to benefit from the flexibility this financing provides as they evaluate future plans for the property.”

Kim Hendren, CEO of University Properties, said in a statement that Knighthead “executed quickly and efficiently” while “providing the flexibility we need as we evaluate next steps for the property.”

Located at 298 East Varsity Lane, Stadium Crossing is a garden-style student housing community developed in the 1980s that has benefited in recent years from IU’s enrollment growth, according to Knighthead. 

Indiana’s flagship state university is poised for a big jump in applications spurred by last season’s football triumph, likely leading Stadium Crossing’s sustained drive of student housing demand.

Andrew Coen can be reached at acoen@commercialobserver.com.