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NEWTOWN SQUARE, PA-In its second major transaction since it went public on Oct. 28, GMH Communities Trust acquired 11 student-housing properties aggregating 2,040 units with 7,176 beds at university campuses in eight states. The total price is $277 million. This transaction comes within a week of the company’s military division’s award of a $600-million, 50-year housing contract with the US Navy.

Three of the properties are from Boston-based Fidelity Investments; five are from Sterling Student Housing, which is a privately owned company based in Houston; and three are from individual private companies. College Park Management LLC, GMH’s student-housing division, will manage the portfolio. Both GMH and College Park are based here.

GMH’s predecessor entity already owned a 10% interest in the Fidelity Investment assets. In this transaction, GMH acquired the remaining 90% interest for $60.1 million, which includes an equity payment of $17.7 million and $42.4 million in assumed debt. In taking its stake to 100%, GMH gained 492 units containing 1,968 beds for $122,154 a unit, or $30,538 a bed.

The properties are: Campus Walk Apartments at the University of Mississippi in Oxford, MS; Pirates Cove Apartments at East Carolina University in Greenville, NC; and University Walk Apartments at the University of North Carolina in Chapel Hill, NC.

The price for the eight additional properties was $216.9 million. They contain an aggregate of 1,548 units encompassing 5,208 beds for an average of $140,116 a unit, or $41,647 a bed. The former Sterling properties are: Sterling University Fields at the University of Illinois in Champaign, IL; Sterling University Pointe at Texas Tech University in Lubbock, TX; Sterling University Oaks at the University of South Carolina in Columbia, SC; Sterling University Uptown at North Texas University in Denton, TX; and Sterling University Centre at Western Michigan University in Kalamazoo, MI.

The three additional properties are: Campus Edge at the University of Southern Mississippi in Hattiesburg, MS; University Courtyard at Minnesota State University in Mankato, MN; and Grand Marc Apartments at the University of California in Riverside, CA. The entire acquisition is funded with proceeds from GMH’s IPO along with debt proceeds from a third-party and assumed debt.

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