Generally

Guidance

When underwriting a Student Housing PropertyStudent Housing PropertyA multifamily residential rental property in which 40% or more, but less than 80%, of the units are leased to either undergraduate or graduate students. or Dedicated Student Housing PropertyDedicated Student Housing PropertyMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. , you should consider the following questions:

• What percentage of units are leased to graduate students versus undergraduate students?
• Has the ratio of student to non-student tenants changed over the past several years?
• Is the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). marketable to non-student tenants, given the size, mix, and quality of the units?
• What is the rent structure?  For example, are rents charged on a by unit basis or by bed basis?
• Who are the parties to the lease agreements?  For example, are they typically signed by 1 tenant or all tenants, and/or co-signed by parents?
• What is the typical lease term?
• What is the enrollment outlook at the college/university?
• What is the student composition (i.e., full-time versus part-time) at the college/university?
• What are the current and forecasted supply and demand for student housing at the college/university?  Will there be any college/university-sponsored construction?
• What is the Key Principal’sKey Principal’sPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. experience with operating Student HousingStudent HousingA multifamily residential rental property in which 40% or more, but less than 80%, of the units are leased to either undergraduate or graduate students. PropertiesPropertiesMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). and Dedicated Student HousingDedicated Student HousingMultifamily rental Property in which 80% or more of the units are leased to undergraduate or graduate students. PropertiesPropertiesMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). ?
• What is the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). proximity to campus?  Can students walk to class and other campus locations?
• Is the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). conveniently located to a college/university-sponsored transportation line?
• Is the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). subject to a Ground LeaseGround LeaseContract for the rental of land, usually on a long term basis. ?  If so, what are the structure and terms of the Ground LeaseGround LeaseContract for the rental of land, usually on a long term basis. ?