Strong Fundamentals Fuel Lending Climate
While some concerns about oversupply loom, low interest rates and demand are bolstering loan activity in the student housing sector.
Like much of the commercial real estate industry, lending for the student housing sector is seeing favorable terms and low rates, thanks mostly to low Treasury rates. Aside from traditional lenders, institutional investors, foreign capital and equity funds continue to co-invest in the space, fueling options for student housing owners and developers. Looming in the distance however, are concerns from some quarters about oversupplied markets and stressed CMBS loans.