Overview

{"root":{"children":[{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Wellings Capital is under contract to provide $12 million of JV Hybrid Equity to an experienced student housing operator team for the acquisition of two institutional-quality assets located steps away from the University of Minnesota Twin Cities. Together, the properties include 311 units and 586 beds serving one of the nation’s largest and most stable student populations. This sidecar plans to invest alongside Wellings Growth Fund II, with closing targeted for mid November 2025.","type":"text","version":1}],"direction":null,"format":"","indent":0,"type":"paragraph","version":1,"textFormat":0,"textStyle":""},{"children":[{"type":"linebreak","version":1},{"detail":0,"format":1,"mode":"normal","style":"","text":"Investment Highlights ","type":"text","version":1}],"direction":null,"format":"","indent":0,"type":"paragraph","version":1,"textFormat":1,"textStyle":""},{"children":[{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"The University of Minnesota Twin Cities is the sixth-largest university in the U.S. by enrollment, with over 57,000 students today. Enrollment has increased by ~12.7% since 2019, and in 2024, the school reported a record freshman class.","type":"text","version":1}],"direction":null,"format":"left","indent":0,"type":"listitem","version":1,"value":1},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Operator currently owns/operates 950+ student housing units/2,600+ beds and focuses solely on student housing. Founders have owned and operated student housing since 2012 and 2014, respectively.","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":2},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Off-market acquisition of a previously mismanaged portfolio at an estimated 41% discount to the seller's 2017 basis and roughly 50% below estimated replacement cost.","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":3},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Favorably supply dynamics: Following 6,400+ new beds delivered in the market between 2018-2025, no new student housing properties are under construction or permitted in 2025, which could lead to meaningful organic rent growth.","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":4},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Five-year, fixed rate loan at 5.67%, interest-only for five years, and ~58% LTC. ","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":5},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"In-place debt service coverage ratio (DSCR) is over 1.6x (robust margin of safety), and the properties are 95%+ occupied for the 2025-2026 academic year.","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":6},{"children":[{"detail":0,"format":0,"mode":"normal","style":"","text":"Before investment, all Wellings operators are subjected to a rigorous 27-step due diligence process that includes headquarter and property visits, criminal and background checks, reference checks, legal reviews, and more.","type":"text","version":1}],"direction":null,"format":"start","indent":0,"type":"listitem","version":1,"value":7}],"direction":null,"format":"","indent":0,"type":"list","version":1,"listType":"bullet","start":1,"tag":"ul"}],"direction":"ltr","format":"","indent":0,"type":"root","version":1}}