San Diego, California

San Diego State University - M@College Student Housing Project

Project Summary

Provident acquisition of an existing student housing project just outside the gates of San Diego State University.

Cost
$55.94 Million
Size
327 Units (579 Beds)
Role
Owner / Borrower
Development Team
Acquisition Financing

In December 2020,working with San Diego State University, Capstone Management Partners and the rest of our team, Provident closed on the acquisition of an existing student housing project just outside the gates of San Diego State University.  M@College, a 327-unit, 579-bed facility, had opened in the Fall of 2018 and had maintained 98% occupancy, even during theCOVID-19 pandemic.  

Despite its off-campus location, M@College is an affiliated property with San Diego State University and meets the University’s Sophomore live on requirement.  The Project is in a premier location, just two blocks from SDSU with proximity to the Student Union, an abundance of retail and dining options, and many other campus amenities.

Financing.  The acquisition was financed through the public issuance of $55,940,000 in tax-exempt revenue bonds through the California Enterprise Development Authority (“CEDA”), combined with $12.15million in Subordinate Student Housing Revenue Bonds placed directly with Capstone.  The bonds are secured by a Leasehold Mortgage and other security agreements on the project and are to be paid solely from project revenues and other funds available under the Indenture.  The bonds were structured with no recourse to CEDA or SDSU. The bonds were rated “Baa3”by Moody’s. BofA Securities served as the lead underwriter and placement agent for the Bonds, which enjoyed an amazing investor response, generating over $840 million in orders for only $55.94 million in bonds.