Aries/Conlon Capital arranges loan for Arizona student housing
Aries/Conlon Capital announced that the firm has arranged a $13.7 million bridge loan to finance the purchase of a note for The Seasons at Tucson www.seasonsattucson.com. The 500-bed student apartment community is located at 811 E. Wetmore Road in Tucson, Arizona, just off the campuses of both The University of Arizona and Pima Community College. Aries/Conlon Capital Principal and COO Tom Reckley arranged the financing on behalf of the Chicago-based borrowers, Brett Pezzuto and Christian Pezzuto.
Originally the mezzanine lender on the property, the borrowers moved into an ownership position after The Seasons’ previous owner entered into difficulties. After increasing occupancy from its 60% historical low to an impressive 97% in the current school year, the borrowers looked to Aries/Conlon Capital to help secure the necessary financing to purchase the senior note on the property through a discounted payoff agreement. The two-year, interest-only bridge loan also affords the client time to prepare to refinance to permanent debt.
“This was a complicated deal and we’ve been by our clients’ sides since the beginning,” said Reckley. “Because of our clients’ impressive asset management skills, and our relationship with a local private fund that we knew could move quickly and accommodate the deal’s complexity, we were able to finance the note purchase. Our clients will be able to dissolve the existing note and deliver the asset free and clear of any issues.”
”Tom was extremely helpful to work with from day one in this transaction,” said Christian Pezzuto. “He was persistent and continuously followed-up on the progress of the lender, as well as our deliverables to the lender, until the very end when the transaction closed.”
Packed with amenities, The Seasons at Tucson offers student residents a clubhouse, sports courts, a 24-hour fitness center, a swimming pool with spa, free shuttle service to The University of Arizona campus, study and game rooms and a computer lab. The upscale community is located on the Rillito Riverwalk with views of the Catalina Mountain Range and is convenient to Tucson’s shopping, dining and entertainment districts.