Cleveland – May 31, 2018 – BGL Real Estate Advisors (BGLREA) is pleased to announce the financial closing for the acquisition of a 100-unit, 400-bedroom, purpose-built student housing development. The project capitalization included a senior acquisition loan provided from Key Bank, preferred equity, common equity, and sponsor equity. BGLREA served as the exclusive financial advisor to Channing Realty Advisors, LLC (Channing) and The Orlean Company (Orlean) in the transaction to assist with the structuring and raising of the preferred, common, and sponsor equity tranches. Specific terms of the transaction were not disclosed.
The property was built in 2008 to capture off-campus housing demand for students enrolled at a mid-sized state university that is consistently regarded as one of the best in its state with the system’s highest four-year graduation rate, three years of increasing and historically high enrollment, and three years of improved financial standing. The name and location of the property and school are not being disclosed at the clients’ request.
The property was acquired to employ a modest value-add strategy intended to address deferred maintenance and unit upgrades, as well as expand project amenities including the fitness center, fire pits, outdoor kitchen, gazebo, dog run, and more. The project was co-sponsored by Channing and Orlean.
Channing acquires income producing, multi-tenant commercial real estate assets in select markets with the thesis that direct real estate investing creates long-term wealth creation through three core real estate value drivers that generate robust returns. If one value driver falters, the other two can still generate wealth while providing downside protection. Founder and President David Kornbluth is a seasoned real estate professional with a proven record of investment success built on a diverse real estate experience base.
Orlean is a leading Ohio-based real estate developer with extensive ground-up commercial real estate experience, including senior and assisted living care housing, affordable and market rate multifamily housing, and commercial retail and for-sale housing in Northeast Ohio.
Brown Gibbons Lang & Company is a leading independent investment bank serving the middle market. BGL specializes in mergers and acquisitions advisory services, debt and equity placements, financial restructuring advice, and valuations and fairness opinions, with global industry teams in Business Services, Consumer & Retail, Environmental & Industrial Services, Healthcare & Life Sciences, Diversified Industrials, Metals & Metals Processing, and Real Estate. BGL has offices in Chicago, Cleveland, Philadelphia, San Antonio, and San Diego in addition to Global M&A partner offices in more than 50 countries across 5 continents. BGL is able to deliver to our clients unparalleled access to strategic relationships, investors, and opportunities globally. For more information, please visit www.bglco.com.