Once a specialty product, student housing loans have now matured as institutions of higher learning rely on private enterprise to provide this needed resource outside of the school's capital budget. There are many types of loans available for this type of project, including construction financing. The underwriting is very similar to regular apartments with the exception of the assumed cost of operation and risk levels of lower attendance.
Student housing can be of a specialty type or an adaptation of a regular apartment configuration. The specialty type provides for greater revenue but has a lower reuse factor. Appraisers who appraise these units must avoid the temptation to use regular apartment projects as comparable properties.
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HOW EQUINET WORKS
