TODAY’S DEALS: Education Realty Trust Announces $108M Acquisition Plans
Education Realty Trust announces a $108 million acquisition and development plan; and Bozzuto, Abdo and Pritzker break ground on $200 million mixed-used development in Washington, D.C.
Memphis, Tenn.—Education Realty Trust Inc. has announced a $108 million acquisition plan involving three student housing communities. The properties are located at Texas Christian University, University of Notre Dame and University of Colorado Boulder.
“We continue to successfully execute our business plan of purchasing well-located assets on or adjacent to robust universities that are intended to meet the growing demand for collegiate student housing and provide value to our shareholders,” says Randy Churchey, president and chief executive officer at Education Realty Trust.
EDR purchased a leasehold interest in GrandMarc at Westberry Place, a 644-bed community located at Texas Christian University, for $54.7 million with cash on hand and the assumption of a $37.1 million variable-interest rate mortgage. The 2006-built mixed-use property is 97.8 percent leased for the 2011-2012 academic year and has a monthly rental rate of $842 per bed.
The firm also purchased Irish Row, a 326-bed student housing community adjacent to the University of Notre Dame, for $27.5 million in cash. The 2009- and 2011-built property is currently 100 percent leased with a monthly rental rate of $726 per bed.
Education Realty Trust will also purchase and expand The Lotus Center, a community adjacent to University of Colorado Boulder, that was picked up for $6 million. The 40-bed property sits on 2.5 acres. EDR plans to build adjacent housing with an underground parking garage, adding 199 beds with 59 apartments. The construction price is estimated at $19.7 million.
JV breaks ground on $200M mixed-use development in D.C.
Washington, D.C.—The Bozzuto Group, Abdo Development and Pritzker Realty Group broke ground today on Monroe Street Market, a $200 million multiphase development at The Catholic University of America in Washington, D.C. The project will be comprised of approximately 720 residential units, 45 townhomes, 80,000 square feet of street-level retail space, 15,000 square feet of artist studio space, a 3,000-square-foot community arts center and 850 parking spaces.
“We are thrilled to announce the start of construction at Monroe Street Market and are grateful to the many public and private partners who came together to make possible such a truly remarkable project in such a challenging economic climate,” says Tom Bozzuto, chairman and chief executive office of The Bozzuto Group.
“The development will transform an are of the city that has not experience the renaissance elsewhere in Washington,” says Jim Abdo, president and chief executive officer of Abdo Development.
The project spans five blocks located adjacent to the Brookland-CUA Metrorail station, just three miles north of the U.S. Capital. Financing consists of a construction loan provided by Bank of America, TD Bank and Fifth Bank, as well as equity funded by Bozzuto, Abdo and Pritzker.
The first phase, which includes 562 units, is scheduled for completion in September 2013. The luxury apartments will have community amenities including a pool with outdoor lounge and movie screen, an internet café, community room with billiards, fitness center with yoga studio, first-floor retail, and garage parking.