Square Mile Capital and Pacific Western Bank provide $93 million in construction financing for student housing project in Gainesville, Florida
Square Mile Capital Management LLC (“Square Mile Capital”) today announced the closing of a $93 million loan to finance the construction of Theory Gainesville, an 861-bed student housing building located less than a half mile from the University of Florida campus in Gainesville, Florida. Square Mile Capital served as the mezzanine lender, with Pacific Western Bank as the primary mortgage lender.
The loan was made to Blue Vista Capital Management, a Chicago-based real estate investment firm
company focused on helping investors maximize returns through superior real estate equity and credit
strategies across the risk-return spectrum. Since 2003, Blue Vista and its student housing management subsidiary, PeakMade Real Estate, have acquired and/or developed $3.5 billion in student housing, representing nearly 40,000 beds on 60 college campuses across the United States and in Canada.
Square Mile Capital Director Harris Neuberg said, “Blue Vista has a strong track record of successfully developing market-leading student housing projects across the country and we are delighted to partner with them on this transaction at the University of Florida. We remain optimistic about the long-term demand outlook for well-located student housing at top universities, and believe the Gainesville student housing market will continue to grow over the next few years.
“The momentum for big schools in Florida, like UF, is very strong for the foreseeable future. This creates an ideal environment for privately-built, purpose-built student housing,” added Tom Whitesell, Executive Vice President and Group Head of Commercial Real Estate, Pacific Western Bank. “And of course, partnering with Square Mile Capital to provide a capital solution to a premier sponsor like Blue Vista is a perfect opportunity.”
Upon completion, the property’s units will be fully furnished with stainless steel appliances and wood-style floors. The property will have a fitness center, game room, rooftop swimming pool and open green space between the buildings in the development. The project is expected to be delivered in two phases, before the fall semester 2023 and before the spring semester 2024.
In 2021, Square Mile Capital issued $6.4 billion in loans, nearly half that volume in the company’s record fourth quarter, when the company issued 24 loans totaling $3.1 billion.
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