Case Study: $100MM+ Student Housing | Leasehold Development | Chapel Hill, NC

Structured a ground lease and appointed a developer for a 12.3-acre, 350,000-square-foot, 850-bed, purpose-built student housing complex located 0.3 miles north of the University of North Carolina campus. 

Challenges

Client was working quickly to coincide the closing with obtaining final permit and approvals from the local municipality. The incumbent leasehold developer was required to ground lease the property subject to in-place approved plans and specs. The mechanics and leasehold nature of the project added complexity to the capitalization of the development. 

Solutions

Conducted an exhaustive targeted marketing process to identify an experienced student housing operator/developer capable of executing on a project of this scope and nature. Educated potential bidders and their capital partners on the ground lease structure and its inherent benefits. With vast experience as a principal buyer and advisor on ground lease transactions, we were able to bridge the gap on all business points between the client (leased fee owner) and the new tenant (leasehold owner).