Chicago, IL (September 13, 2023) – Pearlmark announced that it closed on a $22.45 million mezzanine debt investment for the financing of the unsold Delaware Statutory Trust units in the KB Oxford portfolio, a purpose-built student housing portfolio located at the University of Mississippi. The portfolio comprises 620 beds across two properties: 340 beds at The Arbors at the Park (“Arbors”) and 280 beds at The Cottages at Hooper Hollow (“Hooper Hollow”). The properties are fully leased for the 23’-24’ academic year.
Arbors consists of 10 buildings located on a bike path into campus and is less than a two-minute drive from the university. This 2018-vintage student housing asset has a mix of three-bedroom and four-bedroom units, all with bed to bath parity, private balconies, and in-unit washers and dryers. Amenities at Arbors include 416 parking spaces, grill and picnic areas, a fire pit, a pet park, a pool, and a fitness center.
Hooper Hollow is located approximately 5 minutes from campus and consists of 40 brick buildings. This 2016-vintage student housing asset has a mix of three-bedroom and four-bedroom units, all with bed to bath parity and an extra ½ bath for guests, enclosed porches, and in-unit washers and dryers. Amenities include 356 parking spaces (1.3 spaces per bed), a clubhouse, a pool with a 500 square foot detached pavilion, and a fitness center.
The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P. (“Mezz Fund V”). Kingsbarn Realty Capital purchased the portfolio in 2022 and created a Delaware Statutory Trust ownership structure.
Mark Witt, Managing Director of Pearlmark, arranged the transaction for Pearlmark. Mr. Witt commented, “Financing unsold Delaware Statutory Trust units is fairly unique in our industry and involved a high degree of structuring, but were able to get comfortable based upon the strength of sponsorship and the high-quality student housing complexes well-located near Ole Miss.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “Pearlmark targets student housing assets at top tier universities that have demonstrated continued strong rental rate growth. KB Oxford checks our boxes for proximity to campus, asset quality and sponsor asset management capabilities.”
Pearlmark is a Chicago-based investment firm that targets domestic core-plus to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 574 real estate equity and debt transactions on behalf of investors, representing $5.6 billion in equity capital commitments and $14.0 billion in gross investment value. In credit, Pearlmark has now originated 152 loans aggregating over $2 billion in commitments. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (primarily multifamily and industrial). For more information, please visit https://www.pearlmark.com.
Kingsbarn Realty Capital is headquartered in Las Vegas, NV and offers direct and indirect real estate investments and provides their clients with the opportunity to invest in various structured real estate private placements. Kingsbarn's management team has extensive experience developing, managing, and sponsoring a diverse array of stabilized core properties and income-driven investment funds. Kingsbarn has over $1.9 billion of assets under management and has acquired over 270 properties throughout the United States.