Austin, Texas — American Campus Communities has closed the sale of an asset and the acquisition of two properties, all in separate transactions. ACC says these transactions support its plan to fund growth via dispositions. It sold Northgate Lakes, an off-campus community serving students attending the University of Central Florida (UCF) in Orlando, for a sales price of $39.6 million. This sale brings the company’s year-to-date dispositions to $157.4 million. On the acquisitions front, the company acquired 7th Street Station, a student housing community pedestrian to Oregon State University (OSU) in Corvallis, and The Plaza Apartments located across the street from Florida State University (FSU) in Tallahassee, which the company intends to demolish and redevelop the site. The combined purchase price of both acquisitions totals $36.9 million.
In July, the company completed the disposition of Northgate Lakes, a 710-bed community built in 1998 and previously acquired by the company as part of the Royal Properties portfolio in 2006. American Campus is currently developing The Plaza on University, a new pedestrian community serving students attending UCF. The 1,313-bed mixed-use development is located across from the main gates of UCF and will open in fall 2014.
American Campus closed on the acquisition of 7th Street Station in Corvallis, Ore., in July. The 309-bed community opened 100 percent occupied in September 2012 and is currently 100 percent leased for this academic year. Located 0.3 miles from campus, the community is the first modern, purpose-built student housing community delivered in a market with significant barriers to entry, according to ACC. 7th Street Station offers flat and townhome units along with a community center that features a fitness center, business center, game room and swimming pool.
In August, the company acquired The Plaza Apartments, located north of the FSU campus. The property will be demolished in 2014 and developed as the second phase of the company’s U Club on Woodward project, which was fully pre-leased by January in its initial lease up for this fall. The acquired community is a 1970s-era apartment complex consisting of 359 beds and is currently 71 percent occupied. American Campus will operate the community until the current leases are vacated, which will be no later than July 31, 2014. The new development, U Club on Woodward Phase Two, will contain 496 beds in three-story townhome units and feature a 2,000-square-foot fitness center and resort-style swimming pool. The new development is expected to cost approximately $37 million with construction commencing during the third quarter of 2014 and occupancy in fall 2015.
Article originally published on studenthousingbusiness.com.