After a few starts and stalls, it looks like students at the University of Maryland will call a new housing project home by fall 2010.
The $2 billion State Employees Credit Union of Maryland Inc. and business services CUSO CU Business Capital LLC are involved in an effort that aims to provide space for a university facing a shortage of on-campus housing. More than 23,000 students live off campus, and there is a waiting list of at least 1,000 students each semester for dorms, according to CUBC data.
Located in College Park, Md., the Starview Plaza housing complex will have 600 student beds distributed over six levels, a 382-parking space garage and 8,500 square feet of retail space for lease. The eight-story, 320,000-square-foot complex is steps away from the university’s main gate and will feature a clubhouse recreational facility, atrium space, security system, fitness area and Wi-Fi coverage.
On top of the amenities, Starview will be a silver Leadership in Energy and Environmental Design-certified building, which means it will have proof of energy conservation through site development, water savings, energy efficiency, use of materials and indoor environmental quality. Besides low-flow plumbing fixtures, recycled steel frames and concrete materials, the complex is set to have a partially vegetated roof that can reduce storm water runoff and offer better insulation. The LEED distinction would make Starview one of the greenest buildings in the country, according to CUBC.
SECU was contacted by CUBC to gauge the credit union’s interest in Starview, said Gene Pryor, commercial lending manager at SECU. The credit union was looking at other loan opportunities at the time.
After a review, SECU decided to
move forward.
“CUBC thought it would be an ideal fit for SECU given our affiliation with higher education,” Pryor said. “We have a branch about a mile away from the site. It didn’t take much arm twisting.”
Star Hotels, a Columbia, Md.-based hospitality management company that owns four hotels, is the owner of the project.
According to CUBC, the loan amount at the time of the first offering a few months ago was $45.7 million. The CUSO’s loan and other terms have since changed, and CUBC is setting up for closing, said Murrary Halperin, senior vice president of institutional sales at CUBC. Halperin said the CUSO is currently in negotiations that he can not comment on.
Pryor said it is one of the largest commercial lending deals SECU has been involved with. The credit union started offering business services in 2006 and has provided a little more than $30 million in loans for small businesses all over the size gamut. In May, SECU joined other credit unions nationwide in a $50 million pact to make available Small Business Administration loans. SECU has committed $2 million in SBA funds to help local small businesses gain access to much-needed credit.“If you understand the process, you can drive [the loan process] pretty quick,” Pryor said on working with the SBA.
The credit union has seen an increase in loan requests, including those from brokers seeking financing for larger deals, Pryor said. While demand is up, SECU leans on the conservative side and ensured that the deals coming through the door are on stringent par with its lending policies.
—msamaad@cutimes.com