Riverside, Calif. — 554-bed University Village Towers sells.
Riverside, Calif. — Education Realty Trust Inc. (NYSE:EDR), one of the nation’s largest developers, owners and managers of collegiate housing, has completed the full ownership purchase of University Village Towers, 554-bed a collegiate housing community adjacent to the University of California, Riverside (UC Riverside) in Riverside. EDR purchased the 90 percent interest held by its joint-venture partner with cash-on-hand, based on a total property value of $38.1 million.
Built in 2005, the apartment community is adjacent to campus and offers a variety of furnished one-, two-, three- and four-bedroom units, most with private baths. Amenities include a pool, a fitness center, an outdoor kitchen, tanning beds and Internet access. The property is currently pre-leased for the 2011-2012 academic year at 87 percent, which is 10 percentage points ahead of the prior year with a net rate equal to last year. Based on this pre-leasing and other information, EDR’s purchase price represents a 6.3 percent economic cap rate on expected next 12 months net operating income.
— Dan Marcec