American Campus Communities Announces Sale of $508 Million Non-Core Portfolio
November 15 2016 - 4:01PM
Business Wire
American Campus Communities, Inc. (NYSE: ACC), the nation’s
largest owner and manager of high-quality student housing
properties, today announced that on November 15, the company closed
on the sale of a non-core portfolio of 19 assets containing 12,083
beds for $508 million to Saban Real Estate Group. The transaction
included the prepayment of $197.3 million of secured mortgage debt
and represented an average economic cap rate of 6.1 percent based
on in-place rental revenue, escalated trailing-12 operating
expenses and historical average capital expenditures. American
Campus Communities will provide third party management for 11 of
the assets during a transition period up to approximately five
months.
Including two non-core properties sold during the first quarter
of 2016, the company has completed the disposition of approximately
$582 million of non-core properties during 2016 with the proceeds
being recycled into the company’s $603 million high-yielding 2017
development pipeline. Also, as previously communicated, the company
continues to market two remaining non-core assets with a potential
sale occurring in early 2017.
“We are pleased to have completed the sale of this portfolio
with the proceeds earmarked for reinvestment into our highly
accretive development pipeline,” said Bill Bayless, American Campus
CEO. “With the sale of these non-core assets, which were all
previously acquired as part of larger portfolio acquisitions, we
have transformed our portfolio into one consisting almost entirely
of core assets. Our overall proximity to campus improves to a
median distance to campus of only one-tenth of a mile, from
two-tenths of a mile, and our portfolio now contains only two
remaining assets located more than one mile from campus.
Additionally, with the sold assets averaging 16 years old, the age
of our portfolio improves to an average of 8.5 years. We are very
excited about the internal growth opportunities offered by our
refined best-in-class core portfolio.”
About American Campus Communities
American Campus Communities, Inc. is the largest owner, manager
and developer 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. As of September 30, 2016, American Campus Communities
owned 170 student housing properties containing approximately
105,300 beds. Including its owned and third-party managed
properties, ACC's total managed portfolio consisted of 205
properties with approximately 133,600 beds. Visit
www.americancampus.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.
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version on businesswire.com: http://www.businesswire.com/news/home/20161115006740/en/
American Campus Communities, Inc.Ryan Dennison,
512-732-1000Investor Relations
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