TODAY’S DEALS: Crescent Resources Begins $67M Atlanta Development
Crescent Resources breaks ground in Atlanta's Terminus development; Continental Realty Advisors sells a Phoenix asset for $50 million; and EdR announces $152 million in year-end activity.
Atlanta—Crescent Resources picked up a three-acre parcel within Cousins Properties’ Terminus development in Atlanta and immediately broke ground on Circle Terminus, a $67 million community comprised of 355 units, the first of which are expected for delivery in spring 2014. Crescent and Cousins have been working together on the project for more than a year. The design calls for three eight-story buildings, each with three levels of parking topped by five stories of apartments.
“This site has all the ingredients for a very successful luxury apartment community,” says Ben Collins, regional director for Crescent Resources. “Its location in the heart of Buckhead is ideal. And, with its existing world-class office space, luxury condominiums, outstanding public art, five-star dining and street level retail, Circle Terminus will offer a unique lifestyle that allows residents an opportunity to work, play and live all within easy walking distances.”
Circle Terminus will be designed to meet LEED certification requirements, though Crescent has not released the particulars. Amenities will include a salt-water pool, roof-top terraces with skyline views, a wine bar and tavern, fitness center, dog walk park, art gallery and a business center.
The project was financed by an equity investment from Crescent Resources and a construction loan from JPMorgan Chase & Co. Greystar will serve as the property manager.
Continental Realty Advisors completes a $50M sale in Arizona
The CanyonsPhoenix—Continental Realty Advisors has sold The Canyons, a 629-unit Phoenix community which it acquired in July 2010, for $50 million, or approximately $80,000 per unit. Alliance Residential was the buyer.
The property was sold at 94 percent occupancy. It was 63 percent occupied when CRA picked up the asset. The firm then invested $1.3 million in renovations focused on community upgrades.
“We enjoyed our period of ownership of The Canyons and appreciated the positive response from our client- residents in regard to the many community improvements that were made,” says David Snyder, chairman of CRA. “We are excited to finalize our sale with Alliance Residential. They are a great community operator and we feel that we are leaving our client-residents in good hands.”
According to Synder, CRA will continue investing in Phoenix and has several transactions in the pipeline.
EdR closes 2012 with $152M in activity
Memphis, Tenn.—EdR announced several year-end transactions this morning:
- The firm completed its previously announced purchase of two communities adjacent to Texas Tech University in Lubbock, Texas, for $74 million with cash-on-hand and the assumption of two fixed-rate mortgage loans totaling $48.5 million.
- The company purchased The Province, a purpose-built collegiate community adjacent to Kent State University, for $45 million in cash.
- EdR closed on the sale of The Reserve at Star Pass—a 1,020-bed collegiate housing community 4.5 miles from the University of Arizona—for $25.5 million. These proceeds were utilized to reduce borrowings under the Company’s unsecured line of credit.
- EdR acquired the ground lease encumbering its 74 percent owned asset, University Towers—a 953-bed collegiate community adjacent to North Carolina State University in Raleigh, N.C. The $7.5 million purchase price included an attached 454-space parking deck.
“We continue to improve our portfolio by adding high-quality, accretive assets in strong, growing markets while also selectively recycling capital out of assets that no longer meet our return criteria,” says Randy Churchey, EdR’s president and chief executive officer. “With a robust pipeline, low leverage and the consistent execution of our positioning strategy, we continue to grow value for our company and our shareholders.”
