AUSTIN, TX—Student housing REIT American Campus Communities has traded 19 non-core properties to a partnership of Saban Real Estate and Campus Advantage. The $508-million sale price includes the prepayment of $197.3 million in mortgage debt.
The 12,083-bed portfolio includes properties serving students at Penn State University, Michigan State University, Louisiana State University, University of Missouri, University of Indiana, University of South Carolina, University of Alabama, Florida State University, University of Alabama-Birmingham, East Carolina University and Western Michigan University. ACC will manage 11 of the properties during a transition period of up to five months; CA ultimately will manage all 19 on behalf of the partnership.
“With the sale of these non-core assets, which were all previously acquired as part of larger portfolio acquisitions, we have transformed our portfolio into one consisting almost entirely of core assets,” says Bill Bayless, CEO of ACC, which like CA is headquartered in Austin, TX. “Our overall proximity to campus improves to a median distance to campus of only one-tenth of a mile, from two-tenths of a mile, and our portfolio now contains only two remaining assets located more than one mile from campus.” The sale also improves the age of ACC's portfolio to an an average of 8.5 years.
Mike Peter, president and CEO for CA, which took over management of eight of the communities on Wednesday, calls the former ACC properties “well run, well maintained assets. The properties will benefit from a fresh set of eyes, new programs, upgraded amenities and approximately $30 million in capital improvements that will provide enhanced, supportive communities for students.”
Peter adds that with this deal, his company has become “one of less than a handful of privately-held companies in its industry to acquire over $1.2 billion in portfolio assets.” Saban and CA collectively own and/or operate a portfolio of over 35,000 beds across 40 universities, making them the nation's fourth largest owner/operator of off-campus, purpose-built student housing communities.
AUSTIN, TX—Student housing REIT American Campus Communities has traded 19 non-core properties to a partnership of Saban Real Estate and Campus Advantage. The $508-million sale price includes the prepayment of $197.3 million in mortgage debt.
The 12,083-bed portfolio includes properties serving students at Penn State University, Michigan State University, Louisiana State University, University of Missouri, University of Indiana, University of South Carolina, University of Alabama, Florida State University, University of Alabama-Birmingham, East Carolina University and Western Michigan University. ACC will manage 11 of the properties during a transition period of up to five months; CA ultimately will manage all 19 on behalf of the partnership.
“With the sale of these non-core assets, which were all previously acquired as part of larger portfolio acquisitions, we have transformed our portfolio into one consisting almost entirely of core assets,” says Bill Bayless, CEO of ACC, which like CA is headquartered in Austin, TX. “Our overall proximity to campus improves to a median distance to campus of only one-tenth of a mile, from two-tenths of a mile, and our portfolio now contains only two remaining assets located more than one mile from campus.” The sale also improves the age of ACC's portfolio to an an average of 8.5 years.
Mike Peter, president and CEO for CA, which took over management of eight of the communities on Wednesday, calls the former ACC properties “well run, well maintained assets. The properties will benefit from a fresh set of eyes, new programs, upgraded amenities and approximately $30 million in capital improvements that will provide enhanced, supportive communities for students.”
Peter adds that with this deal, his company has become “one of less than a handful of privately-held companies in its industry to acquire over $1.2 billion in portfolio assets.” Saban and CA collectively own and/or operate a portfolio of over 35,000 beds across 40 universities, making them the nation's fourth largest owner/operator of off-campus, purpose-built student housing communities.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.