CHARLOTTE, NC-Locally-based Campus Crest Communities, Inc. reports it has sold four non-core student housing property assets to an undisclosed buyer for $50 million.
The four properties are part of the company’s Grove brand and each totaled 504 beds. The properties sold were The Grove at Jacksonville, AL, (Jacksonville State University); The Grove at Jonesboro, AR (Arkansas State University); The Grove at Wichita, KS (Wichita State University); and The Grove at Wichita Falls, TX (Midwestern State University).
The closings on the sale of the four properties by wholly-owned subsidiaries of Campus Crest Communities took place on Dec. 27, 2013 and produced net proceeds of $50 million. The cap rate on the property dispositions was approximately 7.6%, the company reports.
For the twelve months ended Sept. 30, 2013, occupancy for the four dispositions was 87.3%, total RevPOB was $446 and NOI margin was 41.1%. By comparison, occupancy, total RevPOB and NOI margin for the company’s remaining 28 wholly-owned operating properties during the same period were 92.8%, $514 and 55.8%, respectively, the company states.
“These dispositions reflect our commitment to continually improve the quality of our portfolio by selling older generation, non-core assets with lower long-term NOI growth prospects compared to our core portfolio,” states Ted W. Rollins, Campus Crest Communities Chairman and CEO. “Dispositions are currently an attractive source of capital, and we plan to recycle a portion of the proceeds into higher yielding developments, as well as pay down a portion of our outstanding credit facility balance in the interim.”