601 Copeland is a $21.1 million development project consisting of 283 beds and is 0.15 miles from FSU’s campus. The 1.35-acre boutique site is located in the popular Southgate submarket, which is a heavily populated student area in the heart of sorority row. The property will feature a 5,964-square-foot community center including a fitness center, social lounge, wireless internet café, and resort-style pool. The community will open for occupancy in Fall 2013 and is targeting a 7.0 percent initial yield on this development.Additionally, the company completed the disposition of Pirate’s Cove, a 12-year old asset located 2.5 miles from East Carolina University, for $27.5 million. In conjunction with REITWEEK 2012, the company is filing a detailed leasing update for the 2012-2013 academic year. As of Friday, June 8, 2012, the same store portfolio is 91.8 percent applied for and 85.6 percent leased compared to 95.1 percent applied for and 88.2 percent leased for the same date prior year, with a 3.5 percent current rental rate increase projected over the in-place rent. About American Campus Communities American Campus Communities, Inc. is the largest developer, owner and manager of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. American Campus Communities owns 123 student housing properties containing approximately 75,700 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consists of 151 properties with approximately 99,000 beds. Visit americancampus.com or studenthousing.com. Forward-Looking Statements In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which American Campus operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.
American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager and developer of high-quality student housing properties in the U.S., today announced progress on its 2012 growth plan and leasing status as an update for the REITWeek 2012 investor conference. During the quarter, the company acquired Avalon Heights, an off-campus project adjacent to the University of South Florida (USF), and purchased an off-campus land parcel at Florida State University (FSU) in Tallahassee. The company anticipates commencing construction on 601 Copeland this week. “We are intently focused on the quality growth of our portfolio as we continue to execute our investment strategy through the acquisition and development of Class A communities close to campus in submarkets with barriers to entry,” said Bill Bayless, American Campus CEO. “These two transactions are representative of the growth opportunities available to well-capitalized companies in this highly fragmented sector of real estate. From Fall 2011 through Fall 2013, we expect to add 28 properties totaling $1.1 billion to our new store portfolio.” Avalon Heights, a $30 million student housing community containing 754 beds, is the most well located asset in the USF market. Situated across the street from campus and 0.35 miles from campus core, the community center features over 20,000 square feet of amenity space including a fitness center, swimming pool, hot tub, basketball court, tennis courts, sand volleyball court, tanning bed, business center, and a large game room with pool tables and gaming consoles. ACC anticipates spending $2.1 million to upgrade the amenities and common areas of the community. The fully furnished units include full kitchens, bedroom/bathroom parity, full size washer/dryer, and a 42” wall-mounted flat screen TV provided in every living room. The projected year-one cap rate for the asset (inclusive of $2.1 million in capital) is 6.2 percent nominal and 5.6 percent economic, with a projected year-two nominal cap rate of 7.1 percent.