Magma Equities has acquired a $38.2 million bridge loan for its acquisition of a multifamily development close to Duke University in Durham, N.C.
Greystone supplied the debt package for Magma’s University Apartments, which includes a 30-month term with two six-month extensions. Magma, a multifamily investment firm, purchased the 199-unit complex for $42.4 million in a joint venture with Viking Partners.
The bridge loan was originated by Justin Hechler, vice president at Greystone.
Justin Hechler stated that the property serves as a fantastic opportunity for the sponsor to expand the existing tenant base in a region that’s experiencing population growth and increased apartment rental interest by young professionals and the workforce at large.
Positioned at 700 Ryan Court, the property was developed in several phases between 1938 and 1984, and includes two outdoor swimming pools. Roughly 60% of University Apartments tenants are students affiliated with Duke University, which is a mile away.
Manhattan Beach, California-based Magma said it intends to broaden the tenant mix over time into a more traditional multifamily asset.