iBorrow, a nationwide private direct lender for commercial real estate, has provided a $52 million loan secured by The Edge Student Village, a 798-bed, 12-story building that provides housing for students of Temple University in Philadelphia, Pennsylvania, one of the state’s premiere public research universities and the third-largest provider of professional education in the country.
The financing will support significant upgrades to the property, strategically positioning the community to attract student residents as campus life continues to normalize following the pandemic, according to Brian Good, CEO of iBorrow.
“The highly amenitized subject property is located immediately adjacent to the Temple University campus, situating residents within walking distance of classes, student resources, and public transit that provides convenient access throughout Downtown Philadelphia,” explains Good. “We are confident in the long-term success of the investment and the borrower’s ability to refinance our loan based on the strength of the location, the business plan, and the property’s track record of near-full occupancy prior to the pandemic.”
Good notes that the iBorrow team has worked with the borrower previously, further bolstering faith in their ability to execute the strategy and create significant value with renovations to the property, which was constructed in 2006. Further, there is opportunity to capitalize on organic growth as the student housing market across the United States is expected to continue to experience strong demand over the next decade.
“Student housing has proven its resilience as it remains an essential aspect of university life, providing students with the opportunity to connect with their peers and utilize campus resources in ways that might not otherwise be possible,” says Good. “As more students return to campus following the pandemic, the market demand for on-campus student housing is positioned for growth. The borrower’s strategic upgrades to The Edge to enhance curb appeal will drive up resident demand, resulting in a substantial increase in net operating income.”
The Edge Student Village is located at 1601 N. 15th Street in Philadelphia, Pennsylvania.