Austin, Texas — Austin-based American Campus Communities Inc. has sold 19 student housing assets containing more than 12,000 beds to Los Angeles-based Saban Real Estate, in partnership with Campus Advantage, for $508 million.
The transaction included the prepayment of $197.3 million of secured mortgage debt.
“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,” says Bill Bayless, CEO of ACC. “Our overall proximity to campus improves to a median distance to campus of only one-tenth of a mile, and our portfolio now contains only two remaining assets located more than one mile from campus.”
Campus Advantage will take over management of the portfolio from ACC in three phases during the next five months, as well as implement a capital investment plan of approximately $30 million to reposition and rebrand the properties.
“These are well maintained properties, they’re well staffed as you would expect from an ACC property and I think they’re really going to benefit from a fresh set of eyes coming in,” says Mike Peter, president and CEO of Campus Advantage. “We’re planning on putting a significant amount of capital into these properties, updating and upgrading clubhouses and some of the units themselves.”
Today, Campus Advantage assumed management on the first phase of assets, which included eight properties near the University of Missouri, Louisiana State University and the University of Alabama. With the acquisition, Campus Advantage has acquired more than $600 million in assets this year and will have more than 30,000 beds under management once it has assumed all the properties in the ACC acquisition.
Robert Wooten and Casey Wenzel of HFF secured financing through Fannie Mae on behalf of Saban and Campus Advantage for the acquisition. HFF’s brokerage team also represented ACC in the transaction, according to sources. Saban also owns 7,679 beds in a joint venture with The Scion Group; with the ACC acquisition, the company now owns more than 19,000 student housing beds.
The 12,083-bed portfolio includes:
- Abbott Place, a 654-bed community located near Michigan State University in East Lansing.
- Burbank Commons, a 532-bed community located near Louisiana State University in Baton Rouge.
- The Cottages of Baton Rouge, a 1,290-bed community located near Louisiana State University.
- U Club Cottages, a 308-bed community located near Louisiana State University.
- University Crescent, a 612-bed community located near Louisiana State University.
- Campus Corner, a 796-bed community located near Indiana University in Bloomington.
- Campus Way, a 680-bed community located near the University of Alabama in Tuscaloosa.
- Forest Village and Woodlake, a 704-bed community located near the University of Missouri in Columbia.
- Grindstone Canyon, a 384-bed community located near the University of Missouri.
- The Cottages of Columbia, a 513-bed community located near the University of Missouri.
- Garnet River Walk, a 476-bed community located near the University of South Carolina in West Columbia.
- University Oaks, a 662-bed community located near the University of South Carolina in Columbia.
- Lions Crossing, a 696-bed community located near Penn State University in State College.
- Nittany Crossing, a 684-bed community located near Penn State University.
- Pirates Place Townhomes, a 528-bed community located near East Carolina University in Greenville, North Carolina.
- University Manor, a 600-bed community located near East Carolina University.
- The Centre, a 700-bed community located near Western Michigan University in Kalamazoo.
- University Club & The Grove, a 736-bed community located near Florida State University in Tallahassee.
- University Heights, a 528-bed community located near the University of Alabama at Birmingham in Birmingham.
— Katie Sloan