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Harrison Street/Campus Crest Merger

Situation:

  • Approximate $2 billion mergers that needed to be completed in first quarter 2016

  • The transaction included 79 student housing properties

Assignment:

  • Primary assignment - Hart was assigned 30 CMBS and Freddie Mac loans to review and obtain consents to the merger – Approximate UPB $526 million.

  • Secondary Assignment – Expedite the property manager changes on the 30 CMBS and Freddie Mac loans prior to the Merger.

Transaction Highlights:

  • Initially reviewed 30 loans and recommended a number for defeasance.

  • Coordinated with Wells, Midland, LNR, Berkadia, GEMSA and various rating agencies on the merger consents and defeasance.

  • Coordinated with all of the above and CW and CIII on the property manager change.

  • Complex organizational charts including multiple new borrowers, guarantors, and foreign investors.

Result:

  • 14 loans – obtained consents to the merger

  • 11 loans - defeased – thanks to upsized banking facility

  • 5 loans paid off

  • 30 property manager change approvals obtained.

  • The merger closed March 2, 2016.

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