American Campus Communities Inc. (NYSE:ACC
), a student lodging REIT, agreed to purchase 19 student housing properties with 12,049 beds from affiliates of Kayne Anderson Capital Advisors LP for $862.8 million. The trade will include 366 beds at an additional phase currently under construction at an existing community.
ACC will assume nearly $396.2 million of outstanding mortgage debt and use$466.6 million in cash to finance the transaction. The deal is scheduled to close by next month. The acquisition of the development property is set to close during the third quarter of next year. ACC will serve as the leasing and management agent for the new complex and will replace six different third-party managers.
The average age of the assets is 3.7 years and its occupancy is 92.3 percent for the 2012 - 2013 academic year. Three out of four of the communities are less than a half mile from campus. ACC will invest approximately $12.3 million in amenity upgrades and capital improvements to the properties.
The portfolio includes:
- The Lofts of Kennesaw, 795 beds, Kennesaw State University in Marietta, GA;
- Aspen Heights, 308 beds, Louisiana State University in Baton Rouge, LA;
- The Cottages of Baton Rouge, 1,290 beds, Louisiana State University in Baton Rouge, LA;
- The Lodges of East Lansing, Phases I and II, 1,049 beds, Michigan State University in East Lansing, MI;
- The Province - Rochester, 816 beds, Rochester Institute of Technology in Rochester, NY;
- 25Twenty, 562 beds, Texas Tech University in Lubbock, TX;
- 5 Twenty Five Angliana, 320 beds, University of Kentucky in Lexington, KY;
- 5 Twenty Four Angliana, 740 beds, University of Kentucky in Lexington, KY;
- The Province - Louisville, 858 beds, University of Louisville in Louisville, KY;
- Grindstone Canyon, 384 beds, University of Missouri in Columbia, MO;
- The Cottages of Columbia, 513 beds, University of Missouri in Columbia, MO;
- Forest Village/Woodlake, 704 beds, University of Missouri in Columbia, MO;
- The Cottages of Durham, 619 beds, University of New Hampshire in Durham, NH;
- The Province - Greensboro, 696 beds, University of North Carolina at Greensboro in Greensboro, NC;
- West 27th Place, 475 beds, University of Southern California in Los Angeles, CA;
- The Province - Tampa, 947 beds, University of South Florida in Tampa, FL;
- The Lofts at Capital Garage, 144 beds, Virginia Commonwealth University in Richmond, VA;
- RAMZ Apartments on Broad, 172 beds, Virginia Commonwealth University in Richmond, VA; and,
- The Province - Dayton, 657 beds, Wright State University in Fairborn, OH.