Tauro exclusively arranged a JV equity funding for a value-add student housing opportunity at San Diego State University. This transaction opens the door for the sponsor to replicate this business plan on many future student housing opportunities.
The property consisted of a built and vacant fraternity house.
The sponsor is growing student housing focused developer out Los Angeles, CA.
- The COVID-19 Pandemic created a new challenge, given the uncertainty around university enrollment.
- The equity check size created a smaller number of market participates.
- Strong returns at the investor level created a high number of responses and offers resulting in a bidding war.
- The proximity to SDSU provided a superior location of other potential investments in the market.
- Co-invest: 90/10
- Preferred return: 12% with a waterfall
- Term: 24-month hold