Shippensburg, Pa., June 23, 2022 – Scope Commercial Real Estate Services, LLC (“SCOPE”), a leading middle-market multifamily investment sales firm has announced the sale of Madison & Brookside Court, a 309-bed, 84-unit student housing complex located in Shippensburg, PA. The property sold for $12,903,000 which equates to $41,757 per bed.
Fahd Malik, director at SCOPE, had the exclusive listing to market the property on behalf of the seller, Madison Court LLC, a local student housing operator. SCOPE sourced and represented a West Coast buyer that won the bid.
“The Buyer saw an opportunity in the student housing market and decided to pursue the asset,” said Malik. “At the time of the sale, the asset was 57 percent preleased with 70 percent occupancy the prior fall semester. Our client plans to leverage a regional student housing management company to elevate the occupancy and stabilize the deal.”
Edward Brown, senior director with Scope Capital Group, was instrumental in securing acquisition financing. The $9,562,500 loan was structured with a five-year term and a rate of 4.19 percent.
“Due to the recent rapid rise in market interest rates, we worked diligently with our lender to preserve an attractive fixed rate on behalf of the Buyer,” comments Brown.
Madison & Brookside Court were built in two phases between 2008 and 2010 and spans 7.59 acres. The complex encompasses seven buildings and 84 units with a mix of three, four, and five-bedroom units that range between 1,200 and 1,450 square feet.
“The pandemic softened the student housing market,” adds Sharrow, managing director at SCOPE. “As some investment groups backed off, others saw and continue to see it as an opportunity.”
Located at 14 Kenneth Avenue, Madison & Brookside Court is situated a half-mile to Shippensburg University’s campus. As of Spring 2020, the University had an enrollment of 4,863 undergraduate students.
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ABOUT SCOPE
SCOPE is the Philadelphia region's preeminent commercial real estate services firm. Privately held, SCOPE offers middle-market investment sales, debt & structured finance, and asset advisory services in the multifamily, mixed-use, and development asset classes. SCOPE empowers its agents through collaboration and technology. In effect, our clients benefit from the most current market intelligence available. This market intelligence coupled with decades of deal making experience ensures maximum return on investment.
ABOUT SCOPE CAPITAL GROUP
SCOPE Capital Group’s capabilities extend to sourcing the most competitive acquisition, bridge, construction, and permanent solutions. The capital is sourced through partnerships with various banks, credit unions, agencies, insurance companies, and alternative lenders. Rosenberg has secured correspondent licenses with agency and life insurance companies enabling SCOPE Capital Group to compete on a national scale.