Memphis — EDR has acquired three student housing projects and closed an underwritten public offering of common stock.
Memphis — Memphis-based Education Realty Trust (EDR) has acquired three student housing projects and closed on its underwritten public offering of 14.375 million shares of common stock. The first of the three acquisitions was a leasehold interest in GrandMarc at Westberry Place, a community on the campus of Texas Christian University in Ft. Worth, Texas, for $54.7 million. The property is subject to a 53-year ground lease with TCU and will be purchased with cash and the assumption of a $37.1 million variable interest rate mortgage. GrandMarc was built in 2006 and contains 644 beds. It is 97.8 percent leased for the 2011-2012 academic year. EDR has also purchased Irish Row, a student housing community near the University of Notre Dame in South Bend, Ind., for $27.5 million in cash. The project, built in 2009 and 2011, contains 326 beds in 127 units, and is 100 percent leased for 2011-2012. The company also plans to purchase The Lotus Center, a student housing community near the University of Colorado in Boulder, Colo., for $6 million. The complex was built in 1960 and underwent major renovation in 2008. The Lotus Center has 40 beds in nine units and is 100 percent occupied for 2011-2012. EDR plans a 199-bed (59 unit) addition to the project that will commence in summer 2012 for a summer 2013 opening.
Separately, EDR has closed its underwritten public offering of 14.375 million shares of common stock, including 1.875 million shares purchased by its underwriters pursuant to an overallotment option. The company received approximately $124.4 million in net proceeds from the offering. Bank of America-Merrill Lynch and KeyBanc Capital Markets served as book running managers for the offering, while Morgan Keegan, PNC Capital Markets and RBC Capital Markets served as lead managers for the offering. Baird and Keefe and Bruvette & Woods served as co-managers.
— Randy Shearin