American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager and developer of high-quality student housing properties in the U.S., today announced the close of sale on an asset and the acquisition of two properties, all in separate transactions. As part of the company’s ongoing program to fund growth via dispositions, it sold Northgate Lakes, an off-campus community serving students attending the University of Central Florida (UCF) in Orlando for a sales price of $39.6 million. This sale brings the company’s year-to-date dispositions to $157.4 million. On the growth front, the company acquired 7 th Street Station, a student housing community pedestrian to Oregon State University (OSU) in Corvallis, and The Plaza Apartments located across the street from Florida State University (FSU) in Tallahassee, which the company intends to demolish and redevelop the site. The combined purchase price of both acquisitions totals $36.9 million.
ACC 7th Street Station, Corvallis, Oregon (Photo: Business Wire)
“We continue to execute on our long-term strategy to self-fund a greater portion of our growth,” said William Talbot, American Campus chief investment officer. “We’re focused on continually improving the quality of our portfolio by selling older products that may have diminishing future NOI growth along with assets that are farther from campus, while reinvesting in newer, core pedestrian assets in submarkets with barriers to entry.”
In July, the company completed the disposition of Northgate Lakes, a 710-bed community built in 1998 and previously acquired by the company as part of the Royal Properties portfolio in 2006. American Campus is currently developing The Plaza on University, a new pedestrian community serving students attending UCF. The 1,313-bed mixed-use development is located across from the main gates of UCF and will open in fall 2014.