Brookfield Properties investment funds together with Scion SZ have organized a refinancing package worth $1.4 billion for a portfolio of 39 student-housing assets located in 16 states, Fitch Ratings said. The loan will be co-issued by Morgan Stanley Capital Holdings, Goldman Sachs, Citi Real Estate Funding Inc. and Bank of Montreal as a two-year, floating-rate, interest-only mortgage featuring three optional one-year extensions. Closing of the financing is set for October 15, 2026.
Nearly 25,000 beds in Texas, North Carolina and Mississippi
Collectively the sites provide 24,960 beds, with an average construction year weighted to 2012. They span 16 states and 29 markets, most of which are concentrated in Texas, North Carolina and Mississippi. The three biggest complexes are Northpoint Crossing in College Station, Texas (1,925 beds), Copper Beech San Marcos in San Marcos, Texas (1,250 beds) and Lark Northgate, also in College Station, Texas (747 beds).
Funds from the loan will be used to pay off $1.3 billion of current debt, settle $25 million of corporate obligations, cover $28 million in closing expenses, and distribute $32.8 million of equity back to the sponsors. KeyBank National Association will act as the master servicer, while CWCapital Asset Management assumes the role of special servicer. After purchasing the portfolio in 2021, the owners have poured over $89.2 million into upgrades, comprising $34 million for unit renovations, $31.8 million to remedy inherited deferred maintenance, $12.8 million for amenity and feature enhancements, and $10.6 million to transform a sizable retail area.
The combined as-is appraised worth of the portfolio totals $1.8 billion, with a market valuation of $1.86 billion. Occupancy reached 89.6 percent according to pre-lease rent rolls for October 2026. Yardi 200 data showed pre-leasing at 93 percent in August, representing an increase of 80 basis points over August 2025 and 120 basis points over August 2024, per the latest Yardi Matrix national student-housing report. Projections suggest the rate will climb to roughly 94 to 94.5 percent. Results differ by location, as 52 institutions posted pre-leasing rates under 90 percent. North Carolina State ranked among the lower performers at 78.8 percent, having received 2,195 beds by August and targeting an additional 970 beds slated for 2027.