Grandbridge Real Estate Capital has closed a USD40.5m transaction for The Province at University of Louisville, a student housing community in Louisville, Kentucky.

Grandbridge's Columbus, Ohio office originated and closed the fixed-rate refinance loan.

Funding for the loan was provided by Freddie Mac under its capital markets execution loan programme.

Financing was secured for a new venture sponsored by The Edwards Companies and Kayne Anderson Real Estate Advisors.

The Province was completed in August 2009 with more than 95 per cent being leased for the 2009-2010 academic year. It is within an eight-minute walk from the University of Louisville campus.

"The Edwards Companies have developed more than 7,000 student housing beds on and around major universities located in the Northeastern, Midwestern and Southeastern parts of the US," says Ted Schmidt, Grandbridge senior vice president. "This financing was very attractive to Freddie Mac given the high quality of the property, the in-fill location next to campus and the exceptional sponsorship."

North Carolina-based Grandbridge, a subsidiary of BB&T, has an investor base that includes insurance companies, pension fund advisers, commercial banks and capital markets investors, as well as a proprietary lending platform. The company is a Freddie Mac Program Plus seller/servicer and targeted affordable housing lender and a Fannie Mae delegated underwriting and servicing lender.