Memphis, Tenn. — Proceeds from recent equity offering to fund activities at ASU, UConn and University of Lousiville.
Memphis, Tenn. — EdR has announced it will use portions of proceeds from its recent equity offering to fund one acquisition, a collegiate housing community serving Arizona State University in Tempe, and two developments — a cottage community adjacent to the University of Louisville and a fourth phase of its Storrs Center/The Oaks on the Square development pedestrian to the University of Connecticut.
EdR has agreed to purchase The District on Apache — a community serving Arizona State University (ASU) — for approximately $92 million. The 900-bed community, within walking distance of the ASU Tempe campus, opened in August 2013 and is 100 percent occupied and is 90 percent pre-leased for the coming academic year. EdR is on track for a September closing and has a targeted first-year, unleveraged economic yield of 6.25 percent for this acquisition.
The District on Apache, which was developed by Residential Housing Development, has 279 units in a variety of studio, one-, two-, three-, four- and five-bedroom floor plans. Each apartment features private or shared bathrooms, granite countertops, stainless steel appliances, washer and dryer, flat screen television and custom furniture. Amenities include a lazy river pool, clubroom, virtual golf course, two-story fitness center, computer lab/business center and a giant outdoor television/movie theater.
EdR will own and manage the University of Connecticut-Storrs Center / The Oaks on The Square. This is a $45 million residential development and will be complete in summer 2015. It is the fourth phase of EdR’s development pedestrian to the University of Connecticut (UConn).
This fourth phase will provide 204 studio, one-, two-, and three-bedroom apartments (390 aggregate beds). It will be adjacent to the first three phases, which total 414 apartments (614 aggregate beds) and are 100 percent pre-leased for the 2014-2015 leasing term. The third phase is on schedule for its August 2014 opening.
EdR will own and manage the residential portion, The Oaks on The Square, while Storrs Center master developer Leyland Alliance LLC of Tuxedo, N.Y., will develop and own the 35,000 square feet of commercial space on the ground level. The targeted first-year, unleveraged economic yield is expected to be between 7 percent and 8 percent.
Lastly, EdR has executed joint venture agreements with Georgia-based Landmark Properties, Inc. to develop, own and manage The Retreat at Louisville near University of Louisville. EdR will have a 75 percent ownership and will manage the community upon its completion in 2015. Total project cost is approximately $45 million, with EdR’s share of costs approximating $33.8 million.
This is the company’s third development with Landmark. The previous developments — The Retreat at State College near Penn State University and The Retreat at Oxford near the University of Mississippi — are both 100 percent leased.
Landmark will commence construction next month on the 157 cottages and clubhouse that will make-up The Retreat at Louisville. On the western edge of campus and close to the new student recreational facility, the community will provide 656 beds in a mix of cottage styles ranging from two- to six-bedroom cottages with large closets, full-size washer and dryer, 9-foot ceilings and high-speed internet/cable. Each bedroom will have a private bathroom.