Texas Growth Fund Project IX, LP is providing the EB-5 Loan for construction of 676-bed, 5-story wrap-style student housing development project that is sited within a single tract that qualifies as a Targeted Employment Area (“TEA”) for EB-5 job creation purposes. The Project provides a job creation cushion for the EB-5 Loan of 582%, which is nearly six times greater than the required amount of jobs created.
The project immediately faces GSU’s new football stadium and it is being built into the center of GSU’s new athletics village and the exciting new lifestyle-oriented retail corridor of Georgia Avenue, comprising the new southern cusp of the Georgia State University campus at 755 Hank Aaron Drive Atlanta, GA 30315.
Georgia State University had enrollment of 32,950 students at the Downtown Atlanta campus in 2016. As the university has grown, the dormitory capacity has overflowed, with the university having to find alternative means of hosting on-campus residents, including the use of nearby hotels. Privately owned student housing properties are currently occupied at 95.0% and are expected to stabilize at that level over the next 4 years. Rent growth is forecasted to grow by an average of 3.2% per year through 2020.
The University System of Georgia approved the consolidation of Georgia State and Georgia Perimeter College. The new institution is estimated to have a total of more than 54,000 students. Georgia Perimeter students now have the opportunity to take classes downtown at Georgia State. This has increased the demand for housing at and around GSU’s campus.
Texas Global Equity Partners I, LLC along with the developer Aspen Heights and Harrison Street Real Estate Capital, one of the largest and most respected institutional investors in student housing nationwide, have deployed $28.9 million of Equity to the $72.2 million total construction costs of the Project, representing 40% of the total development budget.