Charlotte, N.C. — The non-core properties reflected low NOI growth prospects.
Charlotte, N.C. — Campus Crest Communities has sold four of its Grove properties for approximately $50 million to an undisclosed buyer. The properties are in Jacksonville, Ala., Jonesboro, Ark., Wichita, Kan., and Wichita Falls, Texas. Based on the company's 2013 NOI estimate for these properties, the estimated weighted average nominal cap rate on the dispositions was approximately 7.6 percent.
"These dispositions reflect our commitment to continually improve the quality of our portfolio by selling older generation, non-core assets with lower long-term NOI growth prospects compared to our core portfolio," says Ted Rollins, chairman and chief executive officer. "Dispositions are currently an attractive source of capital, and we plan to recycle a portion of the proceeds into higher-yielding developments, as well as to pay down a portion of our outstanding credit facility balance in the interim." Campus Crest Communities acquired Copper Beech Townhome Communities in February 2013, followed by the debut of evo, a new brand concept, in August.