X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

AUSTIN-American Campus Communities Inc. has acquired four off-campus student housing developments, totaling 2,639 beds in Kentucky, Michigan, Ohio and West Virginia. The assets, selling in two separate transactions, cost $127.6 million to bed down.

The Austin-based American Campus picked up a portfolio from Columbus, OH-based Edwards Communities for $102 million and a one-off from Pyramid Properties LLC in Huntington, WV for $26.5 million. The portfolio consists of the 858-bed Newtown Crossing at 351 Foreman Ave. near the University of Kentucky in Lexington; 550-bed Olde Towne University Square at 1746 N. Westwood Ave. near the University of Toledo; and 479-bed Pensinsular Place at 1000 N. Huron River Dr. near East Michigan University in Ypsilanti. The one-off is the 752-bed Courtyard by Pyramid at 2101 6th Ave. near Marshall University in Huntington, WV.

According to this morning’s press release, American Campus assumed $70.7 million in a fixed-rate mortgage with a 5.7% weighted annual average interest. The loan matures in 8.3 years. The buyer also got a pre-development agreement to buy an 84-bed, under-construction expansion at Newtown Crossing. When the units are done in August, they’ll be flipped for another $4.6 million.

The portfolio was on the market for $112.3 million by a Hendricks & Partners team in Birmingham, MI. According to the marketing flyer, the portfolio averaged 99% occupancy during the 2005-06 year and was poised for the same traction this academic year.

The Courtyard at Pyramid, with pedestrian access to the university campus, was built in 1999 and expanded last year by its local owners. The new owner is planning $1.2 million of upgrades for its renamed property, now the Village on Sixth.

To close the deal, American Campus assumed a $16.2-million mortgage with a 5.5% fixed-rate interest and $1.4-million loan at a 6.6% fixed rate. The larger loan matures in 7.4 years and the other one in 9.7 years.

“Each new community is located within walking distance to campus, offers a differentiated product within each market, and is located in a submarket that contains barriers to entry,” Bill Bayless, American Campus’ CEO, says in the press release. The buyer didn’t return a telephone call for comment on the deals by press time.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.