JLL Secures $39.44M Acquisition Loan for Eastman Residential and Triangle Capital's 606-Unit Student Housing Conversion Portfolio
JLL has arranged $39.44 million in acquisition financing for the Eastman Portfolio, a three-property, 606-unit student housing-to-multifamily conversion portfolio co-sponsored by Eastman Residential and Triangle Capital, the firms announced July 27.
The financing is structured as a three-year, floating-rate loan. JLL represented the borrowers in arranging the debt, with the transaction led by Senior Managing Director Scott Aiese and Director Alex Staikos of JLL's Debt Advisory team.
Portfolio Overview: Three Underperforming Student Assets Targeted for Workforce Conversion
The Eastman Portfolio comprises three former off-campus student housing communities originally developed as Campus Crest properties: Grove at Cheney (192 units) in Cheney, Washington; Arch at Troy (192 units) in Troy, Alabama; and CB at Radford (222 units) in Radford, Virginia.
Each property has underperformed relative to competing student housing options due to its distance from the respective university campus it was built to serve. Eastman Residential's business plan calls for converting all three assets to traditional multifamily housing targeting non-student professionals, with a stated goal of achieving more than 90% non-student occupancy through strategic renovations and rebranding.
The conversion strategy reflects a broader dynamic in the student housing sector, where off-campus assets with weaker campus adjacency are being repositioned as workforce-oriented multifamily rather than continuing to compete for student renters against better-located product.
Market-by-Market Employment Thesis
Each property in the portfolio is underwritten around a distinct regional employment base rather than university enrollment demand.
Grove at Cheney is positioned to serve professionals commuting to Spokane-area employment centers in healthcare, education, manufacturing and government. JLL noted that rising housing costs driven by West Coast migration from Los Angeles, San Francisco and Seattle have increased workforce housing demand in the corridor.
Arch at Troy targets workforce demand linked to Montgomery's government centers and Dothan's employment hubs. The local industrial base includes Lockheed Martin's manufacturing facility, which employs more than 800 workers in the area.
CB at Radford is positioned to serve the New River Valley's employment base, which includes healthcare providers Carilion Clinic and LewisGale Hospital Montgomery, manufacturers Volvo Group and Hubbell Lighting, and technology firms drawn by Virginia Tech's research facilities.
JLL cited strong workforce housing demand and minimal new supply coming online in each of the three markets as core factors supporting the financing.
Lender Confidence Tied to Operator Track Record
"What makes this financing particularly attractive is Eastman's track record in conversions combined with the quality of these properties and the robust market fundamentals in each location," said Aiese. "The principals of Eastman are applying a proven strategy at scale in three markets characterized by strong workforce housing demand and minimal new supply coming online."
Eastman Residential's student housing conversion platform launched in 2020 and has acquired more than 2,000 units in this vertical. Its parent company, Eastman Companies, was founded in 1978 and owns, manages or has developed more than 8 million square feet of multifamily, commercial, retail and industrial properties across New Jersey and the New York City Tri-State area.
Triangle Capital Group, co-sponsor on the transaction, is a private real estate investment firm founded in 2009 that focuses on special situations in both equity and debt. The firm has completed more than $1 billion of acquisitions and actively manages investments across more than 20 states.
About the Arranging Firm
JLL Capital Markets is a global provider of capital solutions for real estate investors and occupiers, offering investment sales and advisory, debt advisory, mergers and acquisitions, loan sales, equity and fund placement, and related services. The group has more than 3,000 specialists in offices across nearly 50 countries. JLL (NYSE: JLL) reported annual revenue of $26.1 billion and operates in more than 80 countries as of March 31, 2026.