Grandbridge Finances $12.5 Million Student Housing at Baylor

Published On: 01.22.16

ATLANTA — Grandbridge Real Estate Capital closed a $12,500,000 acquisition/renovation loan secured by a first mortgage on a 200-unit/430-bed dedicated student apartment project just north of Baylor University in Waco, Texas. Baylor University, founded in 1845, is a private university with a total student enrollment of just under 17,000. 

The property is currently known as The Hype, but will be re-branded for the 2016/2017 school year. Originally constructed as a non-student property in 1970, the property was renovated in 2013 and 2014 and transformed into a dedicated student property.

The borrower will continue to upgrade the property through further significant interior and exterior renovations, including relocating the main entry point to the south side of the property, very close to Baylor’s new McLane Stadium.

Atlanta-based Senior Vice President Tom Walsh originated the acquisition/renovation loan. Funding for the loan was provided through BB&T Real Estate Funding, Grandbridge’s exclusive proprietary lending platform. The nonrecourse loan featured a two-year interest-only period, an initial adjustable interest rate below 3.9 percent and future funding of all renovation costs.

“Grandbridge secured a floating rate loan that provides the borrower with an attractive sub-4.0 percent interest rate, future funding for all continuing renovations, as well as partial interest-only and a flexible prepayment structure. Under this program interest is only charged on the outstanding balance, so the borrower avoids the negative arbitrage costs which are common to many nonrecourse bridge programs in today’s market,” said Walsh.

In addition to the relocation of the property entrance, the borrower’s renovation plan includes amenity upgrades, parking area upgrades, adding additional bathrooms to certain units, and washers and dryers, and furnishing for all units, as well as exterior façade upgrades.  

About Grandbridge Real Estate Capital LLC
Headquartered in Charlotte, N.C., Grandbridge Real Estate Capital, a subsidiary of Branch Banking and Trust Company (BB&T), arranges permanent commercial and multifamily real estate loans; services loan portfolios; and provides asset and portfolio management through its broad investor base that includes insurance companies, CMBS investors, pension fund advisors, commercial banks and capital markets investors, as well as its proprietary lending platform, BB&T Real Estate Funding. The company is a Fannie Mae DUS® lender, a Freddie Mac Program Plus® Seller/Servicer, and an approved FHA MAP and LEAN healthcare lender.

With a current servicing portfolio of more than $29 billion, Grandbridge, an S&P “Strong” rated servicer, services loan portfolios and provides asset and portfolio management nationwide for all capital providers including Fannie Mae, Freddie Mac, Ginnie Mae, insurance companies, banks and more than 250 securitizations. For more information about Grandbridge, visit Grandbridge.com.

About BB&T
As of December 31, 2015, BB&T is one of the largest financial services holding companies in the U.S. with $209.9 billion in assets and market capitalization of $29.5 billion. Based in Winston-Salem, N.C., the company operates 2,139 financial centers in 15 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. More information about BB&T and its full line of products and services is available at BBT.com.