Dealmaker: TIAA Bank Refinances Student Housing, Shopping Center

(The Markets at Epps Bridge, Athens, Ga.)

TIAA Bank, Jacksonville, Fla., secured $51 million in cash-out refinancing for a student housing property in Wisconsin and shopping center in Georgia.

TIAA Bank secured $28.5 million in cash-out refinancing for a 93-unit, 249-bed student housing property in Madison, Wis. The loan amount, based on 60% of value, includes loan terms of 10/30 with three years interest only. The $15.4 million that was cash-out will be used for equity recapture.

Shannan Wooten, Vice President of Originations with TIAA Bank, secured the loan; she noted the appeal in having a sponsor who both manages the property and is headquartered in Madison.

“The sponsor has owned the property for 20 years, and they have continued to reinvest in the property by keeping the units current and by adding other features including study rooms, community space, storage units and a coffee lounge to improve the overall experience for the students,” said Wooten.  “The property is also well located within the heart of the University of Wisconsin campus, and the property’s history has been at or near 100% occupancy over the years.”

For the 2022-2023 academic year, the property was 100% pre-leased with a 9% increase in rents over the prior year.

TIAA Bank also finalized a $22.36 million cash-out refinance for The Markets at Epps Bridge, a Class A retail center in Athens, Ga. The non-recourse, 10-year fixed rate loan included a 5-year extension option and 25-year amortization. Additionally, the loan offered prepayment flexibility throughout the term.

Jack Quaritius, Vice President of Commercial Real Estate Lending with TIAA Bank, secured the funding. “he borrower was able to capitalize on our forward rate lock capabilities and secure an attractive rate during a volatile period in the markets,” he said.

The Markets feature several attributes the bank values, including strong historical performance, stable tenancy, experienced sponsorship and a location in a high-growth area. Tenants include Trader Joe’s, Ashley Furniture, Five Guys and Dunkin’ Donuts.