Texas College Housing Complex With Rooftop Pool to Default (1)

Park West, a 3,400-bed student housing complex near the Texas A&M University campus with a resort-style rooftop pool, will default on its July debt payment, according to Moody’s Investors Service.

The ratings company downgraded the bonds deeper into junk on Wednesday, saying that the new rating of Caa2 reflects the project’s impending default on July 1. The bonds are rated eight steps below investment-grade.

The complex in College Station, Texas, which provides an off-campus housing option for students, struggled financially even before the pandemic emptied dorms. Occupancy was hurt by parents and students balking at the higher rents there ...