Financing the Acquisition & Repositioning of Texas Student Housing Community

Tremont Realty Capital provided a $31.2 million floating‑rate loan to finance the acquisition and renovation of The Lodge, a 696‑bed, 258‑unit purpose‑built student housing community serving Texas State University in San Marcos, Texas. Located just minutes from campus and supported by strong demand fundamentals, The Lodge presented a compelling opportunity to acquire a large‑scale asset with both operational and physical upside.

The loan funded the acquisition and supported the sponsor’s renovation plan - advancing upgrades intended to elevate the resident experience, improve competitiveness and position the property for stronger occupancy in one of Texas’s fastest‑growing university markets.

Client strategy & financing needs

The sponsor required a financing partner capable of:

• Executing quickly to support a time‑sensitive acquisition.
• Structuring a renovation‑focused loan that enabled unit interior upgrades, amenity enhancements and operational improvements.
• Aligning capital with leasing cycles, ensuring renovation funds were accessible as milestones were achieved.

Texas State University continues to experience consistent enrollment growth, limited on‑campus housing capacity and strong regional demographic trends - all of which contribute to healthy demand for purpose‑built student housing. In this environment, The Lodge offered an attractive repositioning opportunity, but one that required flexible capital to support both immediate acquisition needs and phased renovation execution.

Our approach

Tremont structured a financing package tailored to the sponsor’s business plan and the unique dynamics of student housing:

• Three-year initial loan term with two one‑year extension options, providing ample runway for lease‑up, renovation completion, and stabilization.
• Future‑funding facility to support the sponsor’s renovation program, ensuring capital availability as improvements and leasing momentum progressed.
• Underwriting centered on real demand drivers, including proximity to campus, strong enrollment growth at Texas State University, and the property’s substantial bed count.
• Alignment with academic leasing cycles, leveraging Tremont’s deep student housing experience to structure timing, reserves, and funding mechanics appropriately.

The transaction - arranged in collaboration with Walker & Dunlop - demonstrates Tremont’s ability to combine speed, discipline and creativity in specialized asset classes. Throughout the process, Tremont leveraged RMR's integrated platform and familiarity with the sponsor’s strategy to support a smooth and efficient closing.

Outcomes

With Tremont’s financing, the sponsor successfully acquired a large‑scale student housing asset with meaningful repositioning potential. The loan structure provided:

• Immediate acquisition capital.
• Dedicated renovation funding aligned with business plan milestones.
• Flexibility to navigate leasing cycles and operational needs.

By aligning capital structure with market demand and business plan execution, Tremont enabled the sponsor to unlock the full potential of a high‑demand student housing community in a rapidly growing university market.

Historic market trends are not reliable indicators of actual future market behavior or future performance of any particular investment, which may differ materially and should not be relied upon as such. For additional information or to get in touch with the Tremont team, please visit www.tremontcapital.com.