The Edge at College Hill, Providence, R.I.
ABOUT
The Edge at College Hill, Providence, R.I.
Linden Lane Structured Capital (LLSC) originated a $5.1 million second mortgage loan on a ground-up student housing tower and historic mid-rise redevelopment. The loan was originated mid-year 2019 and is expected to be paid off by year-end 2021. Pricing is low double digits; last dollar funded equaled 75% of cost. The project was complete and leased at the time of funding; use of proceeds was to satisfy remaining construction payables. The market has deep barriers to entry and populated with some of the finest universities in the country. LLSC’s strong broker relationships, superior construction expertise and ability to understand stressed downside scenarios provided a competitive edge.
Situation – Sponsor required additional dollars to cover construction cost overruns on a stabilized student housing property
Strategy – LLSC put a 2nd mortgage on the property recognizing that its last dollar of risk was 70% of value in highly desirable, difficult to build northeast student housing market with great universities.
Results
13% IRR expected when the property sells in the Spring of 2021.
GALLERY
Some Pictures
