EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, today completed the full ownership purchase of The Reserve on Stinson, a collegiate housing community near the University of Oklahoma in Norman, Okla.
EdR purchased the 90% interest held by its joint-venture partner based on a total property value of $22.9 million. The purchase was funded by EdR with cash on hand.
Built in 2004, the 612-bed apartment community is less than a half mile from campus and offers a variety of furnished two-, three- and four-bedroom units, all with private bedrooms and baths. Residents also enjoy a variety of amenities such as a pool, fitness center, covered parking, shuttle service to campus and robust internet access.
The Reserve on Stinson opened the 2011-2012 academic year 97.5% occupied, which is 8.5 percentage points ahead of the prior year with a net rental rate 13% higher than the previous year. Based on this and other information, EdR’s purchase price represents a 7% economic cap rate on expected next twelve months net operating income.The University of Oklahoma’s total enrollment for the 2011-2012 academic year is more than 30,000 students. The university’s enrollment should grow in the near future due to its affordable tuition which is approximately $8,300 per year for in-state applicants and $19,000 per year for out-of-state applicants. About EdR EdR (NYSE:EDR) is one of America's largest owners, developers and managers of collegiate housing. EdR is a self-administered and self-managed real estate investment trust that owns or manages 61 communities in 23 states with over 34,600 beds within more than 11,200 units. For more information please visit the company's web site at www.EdRtrust.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements about the company's business that are not historical facts are "forward-looking statements." Forward-looking statements are based on current expectations. You should not rely on our forward-looking statements because the matters they describe are subject to known and unknown risks and uncertainties that could cause the company's future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such statements. Such risks are set forth under the captions "Item 1A. Risk Factors" and "Forward-Looking Statements" in our annual report on Form 10-K and under the caption "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" (or similar captions) in our quarterly reports on Form 10-Q, and as described in our other filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the dates on which they are made, and the company undertakes no obligation to update publicly or revise any guidance or other forward-looking statement, whether as a result of new information, future developments, or otherwise.