03/07/2017
Citizens Bank provides $35 million construction loan for student housing project
New 12-story tower will include 124 units, rooftop deck with heated pool
ANN ARBOR, MI – Citizens Bank announced today that Citizens Commercial Banking is providing a $35 million construction loan to Core Ann Arbor, LLC, a joint venture between Core Spaces and DRW Real Estate Investments, for the construction of a student housing project a few blocks from the University of Michigan campus in Ann Arbor. Citizens is the lead arranger and administrative agent.
The Chicago-based joint venture has successfully delivered seven ‘”Hub” student housing developments in the past three years. Core Spaces is a full-service real estate development and management company with extensive experience building industry-leading assets on prime, urban sites across the country, and is considered an industry leader in developing and operating student housing projects. DRW is a global principal trading firm founded in 1992 by Don Wilson. In 2009, DRW created a real estate arm to take advantage of opportunistic investments when developers were unable to raise capital from lenders or traditional sources of capital. The firm deploys its own capital for real estate investments, with a portfolio value in excess of $1.5 billion.
The new Class A+ luxury student housing project will be 12 stories high and will contain 124 units with 310 beds. It will feature a club room, management office, business lounge, fitness center and a rooftop deck with heated pool. The tower will be located adjacent to the recently renovated Graduate Hotel within blocks of the University of Michigan campus, downtown Ann Arbor and the historic Kerrytown district.
“The teams at Core Spaces and DRW Real Estate Investments are longtime clients and we look forward to continuing to work with them on more projects in the future,” said Gary Magnuson, executive vice president and head of Commercial Real Estate Finance at Citizens Bank. “Providing construction loans is just one of the ways that Citizens can deliver value for clients at every stage of their business life cycle.”
Citizens’ Commercial Real Estate Finance team provides project finance loans of more than $20 million, focusing on building relationships with strong commercial real estate sponsors located in the bank’s market coverage. Citizens makes loans for multifamily, office, retail, industrial and hospitality properties.
Citizens is positioned as a strategic and financial partner, offering deep expertise, great ideas and seamless deal execution. The Citizens Commercial Banking approach puts clients first, and offers solutions that help clients make the best decisions throughout the life cycle of their business.
For more information about real estate financing options and more from Citizens, visit the Citizens Commercial Banking website.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $149.5 billion in assets as of December 31, 2016. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. In Consumer Banking, Citizens helps its retail customers “bank better” with mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,200 ATMs and approximately 1,200 Citizens Bank branches in 11 states in the New England, Mid-Atlantic and Midwest regions. Citizens also provides wealth management, mortgage lending, auto lending, student lending and commercial banking services in select markets nationwide. In Commercial Banking, Citizens offers corporate, institutional and not-for-profit clients a full range of wholesale banking products and services including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance.
Citizens operates through its subsidiaries Citizens Bank, N.A., and Citizens Bank of Pennsylvania as Citizens Bank, Citizens Commercial Banking and Citizens One. Additional information about Citizens and its full line of products and services can be found at www.citizensbank.com.
