Grandbridge Closes $16 Million Baton Rouge Student Housing Deal

Published On: 12.22.10

Sterling_NorthgateThe Dallas office of Grandbridge Real Estate Capital recently originated and closed a $16,009,700 first mortgage loan secured by Sterling Northgate Apartments, a 98-unit/348-bed multifamily student housing property in Baton Rouge, La.  Funding for the fixed rate acquisition loan was provided by Fannie Mae under its Delegated Servicing and Underwriting (DUS®) loan program with an interest rate in the low five percent range and a 10-year term, amortized over 30 years. 

“Grandbridge, working directly with Fannie Mae, was able to offer a maximum proceeds loan with two and a half years of interest only, enabling the borrower to maximize his return through the acquisition of this asset while meeting the borrower’s strict timeline for commitment and closing,” said Grandbridge Vice President Eli Gershenson, originator of the transaction.

Developed in 2006, the dedicated student housing community is situated on a two-acre parcel of land, just two blocks north of the campus of Louisiana State University. The single residential building consists of six floors comprised of two-bedroom/two-bathroom and three-bedroom/three-bathroom units.  Amenities to the property include a resort-style swimming pool, computer lab, fitness center, tanning bed, multiple grilling areas, elevators and gated access to parking and parking garage.

Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T, has a broad investor base that includes insurance companies, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform.

The company is a Fannie Mae DUS lender and a Freddie Mac Program Plus® Seller/Servicer and Targeted Affordable Housing lender. Grandbridge is also a Multifamily Accelerated Processor (MAP) and LEAN healthcare approved active participant in products insured by the Federal Housing Administration (FHA). The company arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management, as well as real estate brokerage services. Grandbridge has a current servicing portfolio of $24 billion and represents approximately 100 capital providers.

At September 30, BB&T Corporation had $157.2 billion in assets and is one of the nation’s largest financial holding companies. Founded in 1872, it operates more than 1,800 financial centers in 12 states and Washington, D.C. More information about the company is available at BBT.com.