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%|
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