We’ve recently closed another great deal: a $3.75 million leasehold mortgage loan, for the much needed renovation of two student housing properties on Eastern New Mexico University (ENMU) campuses in Portales and Roswell, New Mexico.
The Portales property, San Juan Village, is on ENMU’s main campus at 11 West 17th Street. The Roswell property, Sierra Vista Village, is located at 28 West Martin Street, on ENMU’s Roswell satellite campus. The two assets contain 198 units and 525 beds combined, consisting of one, two, and four bedrooms. Both properties are on ground leases with ENMU.
The sponsor, investor Gershon Eichorn of Up Realty, purchased the assets in 2017 and put together a strategy to improve operations by eliminating the inefficient unit mix and incorporating more desirable floor plans. To implement his vision, all four-bedroom units at the properties will be converted to one and two bedroom units, bringing the revised count to 267 units and 431 beds. The properties are currently between 50 and 60 percent occupied, and renovation of unoccupied units is now underway. We expect the units to be fully completed and ready for leasing in the 2018 and 2019 school year.
Based in Brooklyn, Gershon owns a portfolio of properties in and around New York, New Jersey, and Connecticut. As he looked to expand into different areas, Gershon saw a great deal of potential in San Juan Village and Sierra Vista Village. By condensing the units, Gershon will not only see a marked increase in occupancy, he’ll increase the market value of the assets easily and efficiently.
We’re excited to witness the positive impact of the renovations on the assets and the real estate markets in Portales and Roswell. Gershon’s strategic thinking is impressive, and we look forward to partnering with him on future projects, as our business relationship continues to grow.