PGIM Provides Floating-Rate Bridge Refinance for Atmosphere Tempe Student Housing Serving Arizona State University
TSB Capital Advisors has arranged a floating-rate bridge loan from PGIM to refinance Atmosphere Tempe, a 252-unit, 530-bed student housing high-rise in Tempe, Arizona that serves Arizona State University. The financing was secured on behalf of sponsors Trinitas Ventures and Harrison Street, the firms announced July 14.
Deal Structure and Advisory Process
TSB Capital Advisors ran a competitive process to identify a lending partner capable of executing with speed and certainty. PGIM, the global asset management business of Prudential Financial with $1.4 trillion in assets under management, provided the debt. No loan amount or specific terms were disclosed.
"Atmosphere Tempe is exactly the kind of asset institutional capital wants exposure to right now—a high-quality, well-positioned property backed by sponsors with a proven track record in the space," said Stephen R. Hovanec of TSB Capital Advisors. "Getting this refinance done at this size, on a floating-rate structure, in this rate environment took real conviction from the lender and a sponsorship group that lenders trust. We're proud to have delivered a financing solution that reflects the strength of both the asset and the team behind it."
TSB Capital Advisors, headquartered in Phoenix with additional offices in Paoli, Pennsylvania and Dallas, Texas, has closed more than 550 deals totaling over $80 billion in student housing and multifamily transactions since its founding in 2009.
About Atmosphere Tempe
Delivered in 2021, Atmosphere Tempe is located at 707 S Forest Ave in Tempe, within walking distance of both the Arizona State University campus and downtown Tempe's Mill Avenue corridor. The property comprises 252 units across 530 beds.
Units at the property feature ensuite bathrooms, full-sized washers and dryers, stainless-steel appliances, and quartz countertops. Community amenities include a rooftop pool and hot tub, a resort-style sundeck with lounge seating and grilling stations, a fitness center with a MIRROR virtual training system, private study lounges, a computer lounge, and a coffee bar.
The transaction reflects what TSB Capital Advisors described as "continued institutional confidence in well-located, well-built student housing assets near flagship public universities."
Sponsor Profiles: Trinitas Ventures and Harrison Street
Trinitas Ventures, headquartered in Indianapolis, Indiana with offices in Lafayette, Indiana and Chicago, Illinois, is a fully integrated real estate firm focused on the development and operation of residential communities. The firm has developed more than $2 billion in residential communities nationally and maintains a current pipeline of more than 15 projects valued at over $1.4 billion.
Harrison Street Asset Management, co-headquartered in Chicago, Toronto, and London, manages $109 billion in assets under management across real estate, infrastructure, and credit strategies. The firm serves more than 1,100 institutional investors and over 300 registered investment advisors through offices across North America, Europe, Asia, and the Middle East. Harrison Street is among the largest private owners of student housing globally, having invested more than $24.3 billion across 431 properties totaling approximately 238,000 beds in the student housing sector throughout North America and Europe since inception.
Lender Background: PGIM
PGIM is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), with $1.4 trillion in assets under management. The firm offers investment strategies across fixed income, equities, real estate, and alternatives, with more than 1,500 investment professionals across 40 offices in 20 countries serving retail and institutional clients worldwide.
Market Context
The Atmosphere Tempe refinancing adds to a series of institutional capital transactions in the purpose-built student housing sector, particularly for assets located adjacent to large public university campuses. TSB Capital Advisors noted that the floating-rate bridge structure required meaningful conviction from the lender given the current interest rate environment, pointing to the sponsorship group's track record as a key factor in execution.
Arizona State University, one of the largest public universities in the United States by enrollment, anchors demand for student housing in the Tempe submarket. Atmosphere Tempe's proximity to both the ASU campus and the Mill Avenue retail and entertainment district positions the asset within a high-demand corridor for purpose-built student housing.