MEMPHIS, TN - EdR, one of the nation’s largest developers, owners and managers of collegiate housing, announced the purchase of The District on 5th — a collegiate housing community serving the University of Arizona in Tucson, Az. — for $67 million.
The District on 5th is a 764-bed, 208-unit community located within walking distance of the University of Arizona. This LEED Silver community opened last month and features two-, three- and four-bedroom apartments. Amenities include a pool with beach entry, clubroom, spa, computer lab/business center and an outdoor movie theater.
The community is 99% leased for the 2012-2013 academic year with an average monthly lease rate of $633 per bed. The purchase price represents an approximate 6.3% economic cap rate on expected next 12 months’ net operating income.
“This well-located, high quality asset near a robust university with a growing enrollment fits well with our long-term growth strategy,” said Randy Churchey, EdR’s president and chief executive officer. “The District on 5th further improves the quality of our portfolio and will bring additional value to our shareholders.”
The University of Arizona’s Tucson campus has a total enrollment of approximately 38,000 undergraduate and graduate students. Current on-campus housing consists of slightly less than 6,800 beds. The Arizona Board of Regents expects enrollment to increase 13,000 by 2020.
EdR (NYSE:EDR) is one of America's largest owners, developers and managers of collegiate housing. A self-administered and self-managed real estate investment trust, EdR owns or manages — with this purchase — 63 communities in 24 states with more than 36,000 beds within nearly 12,000 units.
Source: EdR / #Student #Apartments