The price works out to $124,722 per unit, or $40,233 per bed, for the fully furnished 360-unit, 1,116-bed Campus Lodge. Student housing owner/operators generally rent their properties' beds on a monthly basis.
The debt in the deal carries an interest rate of 6.97%. EDR owns other student housing properties at the University of Central Florida in Orlando; the University of South Florida in Tampa; and Florida State University in Tallahassee. The four-year-old Campus Lodge has a fitness center, pool plaza with water volleyball, poolside billiards and a computer center.
In a separate transaction, EDR has contracted to buy the 576-bed Sterling Arbors off-campus student housing property a mile from Auburn University's campus in Auburn, AL for $12.6 million in cash. The price equals $21,875 per bed. The Dinnerstein Group developed the asset. The closing is scheduled for early July.
ERT owns or manages about 28,000 beds at 41 properties near campuses across America. The REIT has 4,851 new beds under construction.
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