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Blue Vista closes on $155m construction loan

At a time when constructing lending is difficult to obtain, a $280m joint venture fund between Blue Vista Capital Management and development firm Place Properties has secured a $155m construction loan from multiple lenders. US capital market analysts add the time taken to get financing is getting longer and now takes up to five months.

Blue Vista Capital Management has secured a $155 million construction loan for nine of its student housing developments.

The loan, secured by properties being developed by Blue Vista’s $280 million joint venture fund with Atlanta, Georgia-based developer Place Properties, was secured from multiple lenders, PERE was told. In a statement, Place Properties said the developments were due for completion in July.

Blue Vista and Place Properties have been actively buying student housing since launching the Place/BV Student Housing Fund last year. In February, the firms acquired properties close to the University of Mississippi, and Texas A&M University in College Station.

The Place/BV Student Housing Fund has also set aside $50 million of equity to purchase “pre-distressed, distressed and bank foreclosed” student accommodation.

According to a separate report from real estate capital markets firm Cushman & Wakefield Sonnenblick-Goldman today, the amount of time taken to close loans is growing with many financing deals now taking four to five months to complete.

The firm added that loans above $40 million were “routinely being broken into sub-portfolios” as lenders targeted smaller loan amounts and lower loan-to-value ratios. In the US, life insurance companies and regional banks are becoming active participants in the lending market.

In the latest Cushman & Wakefield Sonnenblick-Goldman capital markets update, a majority of financing deals and quotes are from life insurance companies and regional banks. US government agencies, such as Fannie Mae and Freddie Mac, are also providing “unprecedented liquidity” for the refinancing and development of rental, multifamily properties, the firm said.