CHARLOTTE, NC - Campus Crest Communities, Inc., a leading developer, builder, owner and manager of high-quality, purpose-built student housing under The Grove® brand, announced the complete list of development projects for delivery in the 2012/2013 academic year. Including the two wholly-owned projects the Company previously announced, Campus Crest is scheduled to deliver a total of six new projects – three wholly-owned and three joint venture – for the 2012/2013 academic year.
Campus Crest Co-Chairman and Chief Executive Officer Ted Rollins noted, “I am pleased to announce the remaining four projects scheduled for delivery in the 2012/2013 academic year. All six projects are the culmination of hard work by our team members, diligent underwriting and the synergies resulting from the Company’s vertically integrated platform. Having built all 33 properties in our portfolio over the past seven years, we continue to refine and improve our development, construction, leasing and management processes. The new developments have a higher average bed count than the operating portfolio average, and are located on average about 0.4 miles to campus in markets with very compelling supply/demand characteristics. These exciting new projects underscore our promise to provide market-leading product and services to our residents that will enhance the communities we serve, while we seek to create long-term value for our shareholders.”
The three wholly-owned communities for the 2012/2013 academic year have a total expected construction cost of $84.7 million. This includes the previously announced, wholly-owned projects at Auburn University and the University of Maine, which have broken ground and are scheduled for delivery in the third quarter of 2012. The three joint venture projects will be developed in partnership with Harrison Street Real Estate Capital (“HSRE”) for $72.1 million; the Company owns a 10.0% interest in these communities. Expected yields on the six projects are in a range of 7.5% to 8.0%.
Select highlights for the projects include:
The Grove at Auburn: Adjacent to the on-campus Greek housing at Auburn University, which has a total fall 2011 enrollment of over 25,000 students.
The Grove at Flagstaff: Located approximately 0.3 miles from a university that is experiencing a significant enrollment growth and limited on-campus housing options.
The Grove at Orono: First property in the market to provide a full private bed and bath living option to all of its student customers.
The Grove at Fayetteville: Serving a fall 2011 student body of over 23,000, an 8% increase from last year’s record breaking enrollment.
The Grove at Laramie: Less than 0.3 miles from the campus of a university that has experienced record enrollment growth over the last two academic years.
The Grove at Stillwater: A redevelopment and expansion of an existing property to The Grove® platform, that will serve a campus of over 22,000 students
The Company or the joint venture has received construction financing commitments of $72.4 million at an average spread of 265 basis points over LIBOR for the four newly announced projects. The Auburn and Orono developments have $31.5 million of construction financing in-place at an average spread of 285 basis points over LIBOR. The Company intends to finance its share of the remaining construction costs through the recently upsized credit facility, which has a capacity of $150 million.
Campus Crest Communities, Inc. (NYSE: CCG) is a leading developer, builder, owner and manager of high-quality, purpose-built student housing properties located in targeted U.S. markets. The Company is a self-managed, self-administered and vertically-integrated real estate investment trust which operates all of its properties under The Grove® brand. Campus Crest Communities owns interests in 33 student housing properties containing approximately 6,324 apartment units and 17,064 beds. Since its inception, the Company has focused on customer service, privacy, on-site amenities and other lifestyle considerations to provide college students with a higher standard of living.