Also during the quarter, the company executed a presale agreement via the company’s mezzanine investment program to acquire Townhomes at Newtown Crossing, a 608-bed off-campus development opening in August 2013 that will serve students attending the University of Kentucky for a purchase price of $38.8 million. As part of the agreement, the company is providing the developer with $2.0 million in mezzanine financing for the development of the project, which has a stabilized nominal yield of 7.0 percent.
During the quarter, the company completed construction and delivered $381.4 million of owned assets into service. The 11 developments are all core Class A assets pedestrian to campus in their respective markets and achieved a cumulative first-year development yield of 7.1 percent. As of September 30, 2012, the new assets are 95.2 percent occupied for the upcoming academic year.Also during the quarter, the company executed a ground lease agreement via the company’s American Campus Equity (ACE) program and commenced construction on a seventh-phase project at Prairie View A&M University in Texas. The $15.6 million on-campus development will contain 336 beds.The company has previously demolished all of the University’s older traditional housing stock consisting of more than 3,000 beds and developed 3,870 new beds for the University, including this phase, making it the largest student housing revitalization project in the nation. Subsequent to quarter end, the company commenced construction on a $112.3 million mixed-use development project in Orlando, Florida. The 1,313-bed project, referred to as University Shoppes, is located adjacent to the University of Central Florida and will feature 60,000 square-feet of retail space with four-stories of residential units. The community is scheduled to open for occupancy in August 2014. Dispositions Subsequent to quarter end, the company sold Brookstone Village and Campus Walk, a combined 528-bed community located in Wilmington, North Carolina, for a total sales price of $26.6 million. The outstanding debt on the two properties was $10.8 million. Cap rates on the transaction are 6.6 percent nominal and 6.3 percent economic.