CCG Announces Successful Disposition Of Four Non-Core Assets For $50.0 Million

Campus Crest Communities, Inc. (NYSE: CCG) (the “Company”) today announced that it closed on the sale of four wholly-owned student housing properties on December 27, 2013. The four Grove-branded properties were unencumbered and generated net proceeds to the Company of approximately $50.0 million. Based on the Company’s 2013 NOI estimate for these properties, the estimated weighted average nominal cap rate on the dispositions was approximately 7.6%.
Property Name University

Year

Opened
  Units   Beds  

Distance

(miles)
  Enrollment   Tuition
         
Dispositions
The Grove at Jacksonville, AL Jacksonville State University 2007 192 504 0.2 9,161 $7,950
The Grove at Jonesboro, AR Arkansas State University 2008 192 504 0.3 13,877 6,934
The Grove at Wichita, KS Wichita State University 2008 192 504 1.1 14,893 5,418
The Grove at Wichita Falls, TX Midwestern State University 2008   192   504   1.2   5,916   7,238
Total / Median / Average (1) 768 2,016 0.7 10,962 $6,885
 
(1) Reflects total units and beds, median distance to campus, and average enrollment and tuition

For the twelve months ended September 30, 2013, occupancy for the four dispositions was 87.3%, total RevPOB was $446 and NOI margin was 41.1%. By comparison, occupancy, total RevPOB and NOI margin for the Company’s remaining 28 wholly-owned operating properties during the same period were 92.8%, $514 and 55.8%, respectively.

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