EdR (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, today announced the purchase of The District on 5 th — a collegiate housing community serving the University of Arizona in Tucson, Az. — for $67 million.
The District on 5 th is a 764-bed, 208-unit community located within walking distance of the University of Arizona. This LEED Silver community opened last month and features two-, three- and four-bedroom apartments. Amenities include a pool with beach entry, clubroom, spa, computer lab/business center and an outdoor movie theater.
The community is 99% leased for the 2012-2013 academic year with an average monthly lease rate of $633 per bed. The purchase price represents an approximate 6.3% economic cap rate on expected next 12 months’ net operating income.
“This well-located, high quality asset near a robust university with a growing enrollment fits well with our long-term growth strategy,” said Randy Churchey, EdR’s president and chief executive officer. “The District on 5 th further improves the quality of our portfolio and will bring additional value to our shareholders.”The University of Arizona’s Tucson campus has a total enrollment of approximately 38,000 undergraduate and graduate students. Current on-campus housing consists of slightly less than 6,800 beds. The Arizona Board of Regents expects enrollment to increase 13,000 by 2020. About EdR EdR (NYSE:EDR) is one of America's largest owners, developers and managers of collegiate housing. A self-administered and self-managed real estate investment trust, EdR owns or manages — with this purchase — 63 communities in 24 states with more than 36,000 beds within nearly 12,000 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.
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