McKinley Acquires Distressed Student Housing Asset Plans Renovation and Conversion to Luxury Apartments in Solid Tertiary MarketJanuary 12, 2014
Champaign, IL McKinley is pleased to announce that it has acquired Nantucket Cove, a 240 unit former distressed purpose built student housing asset with a plan to extensively renovate and convert it to a luxury apartment home community. The distressed asset, with a fundamentally flawed original concept, was selected as an opportunity for acquisition, repositioning and value creation utilizing McKinleys expertise with a comprehensive renovation and conversion plan. Formerly known as University Village, McKinley is pleased to have the opportunity to reposition this asset to a traditional apartment community which will best serve the needs of local employers, the University of Illinois faculty and staff as well as students. These large two, three, and four bedroom apartment homes following the completed renovation will offer unique floor plans providing excellent options for families that previously did not exist in this location. Nantucket Cove, as a luxury community is ideally located in the heart of great shopping and just a few short minutes from all that downtown Champaign has to offer.
McKinley has owned and operated apartments in Champaign since 1986 and we are pleased to be able to expand our presence in the market as well as offer quality living in this location as we endeavor to reposition this asset to best serve the community, stated Kenneth P. Polsinelli, McKinleys Chief Real Estate Officer. This acquisition continues our long track record of creating value and enriching the quality of life in our communities.
The PrivateBank is providing the acquisition and renovation financing for this transaction and Berkadia Commercial Mortgage is providing HUD long-term financing. "This acquisition was closed quickly and efficiently by the PrivateBank adding to our track record of execution speed and certainty, states Albert M. Berriz, Chief Executive Officer, we are fortunate to work side by side with both The PrivateBank and Berkadia on Nantucket Cove.
With the addition of Nantucket Cove to its portfolio, McKinley now owns and operates four apartment communities in Champaign consisting of 654 apartment homes.