PNC Real Estate has provided financing to long-term client North American Properties, Inc. (NAP), to build attractive housing for students at Florida State University (FSU) in Tallahassee, Florida. The project required extensive remediation of a brownfield site near campus and close to a WWII-era airbase.
PNC delivered $28 million of debt for construction financing on the 112 unit/413 bed student housing project, which comprised a $20 million construction loan and a separate $8 million term loan for the site. The building was pre-sold to an affiliate of a national student housing REIT, a long-term partner of NAP.
Named the “Lumberyard,” the project is the third phase and the fifth student housing building developed by North American Properties, Inc. at FSU. PNC Real Estate financed Phase I of the community.
Founded in 1954, North American Properties, Inc. is a multi-regional real estate operating company that has acquired, developed and managed more than $4 billion of retail, multifamily, mixed use and office properties across the United States. PNC has provided financing to the client for more than 40 years.
According to Shawn McIntyre, Partner with NAP, “The deal was highly competitive, but ultimately we awarded it to PNC Real Estate due to our decades-long relationship, the successful financing they provided for Phase I in 2013 and their ability to understand and manage a complex tax-driven structure. PNC consistently shines through when completing complicated transactions.”
The client also maintains treasury management, interest rate risk management and wealth management relationships with PNC.
Although there were few surprises during the transaction, one stands out. Local news media took notice when a WWII-era bomb was unearthed on the site by construction workers. The Tallahassee Police Department, assisted by a Tyndall Air Force Base ordnance detonating team, buried and detonated the bomb. The explosion was felt on the university campus nearby and could be heard for many miles. There were no injuries and no buildings were affected, but the community won’t soon forget the “Lumberyard’s” groundbreaking beginning.
Date: December 2016
Location: Tallahassee, Florida
Financing Amount and Type: $20 million construction loan and a separate $8 million term loan for the site
Scope: 112 student housing units
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