This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CCG Closes Purchase Of JV Properties

Campus Crest Communities, Inc. (NYSE:CCG) (the “Company”) today announced it has closed on the purchase of the remaining 50.1% interest in The Grove at Moscow, Idaho, and the remaining 80.0% interest in The Grove at Valdosta, Georgia, owned by its joint venture partner, Harrison Street Real Estate (“HSRE”). The Company utilized approximately $43.5 million of proceeds from its recent common equity offering to fund the $16.2 million purchase price and retire $27.3 million of mortgage indebtedness secured by the properties.

Based on management’s current estimate of the properties’ next 12 months net operating income, the acquisitions imply a nominal capitalization rate of approximately 7.2%.

With the completion of this acquisition, the Company has purchased wholly-owned interests in seven properties from HSRE and increased its wholly-owned operating assets from 27 to 29 properties. The Company continues to own interests in four additional operating assets held in joint ventures with HSRE.

The table below provides details on the properties:

                   
Property     University Served     Year Opened    

Miles to Campus

    Total Enrollment

(Fall '11)

    Occ. (3/31/12)
The Grove at Moscow University of Idaho 2009 0.5 11,043 97.4%
The Grove at Valdosta Valdosta State University 2011 1.9 13,089 98.8%
 

“Selective acquisitions of the HSRE joint venture assets continue to be an excellent avenue for our Company to grow its wholly-owned portfolio. These assets, which the Company developed and operates, have demonstrated strong pre-leasing and operational results, and are located at universities we believe have attractive market characteristics,” said Ted W. Rollins, the Company’s Co-Chairman and Chief Executive Officer. “We are excited about our progress this year from both an operational and capital perspective. Our preferred offering in February provided funding for our academic year 2012/2013 development pipeline, and our recent common offering provided the flexibility to purchase these assets and reduce our leverage, on a net-debt-to-enterprise-value basis, by over 750 basis points, which we believe is responsible given the macroeconomic backdrop."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs