American Campus Communities (ACC) Reports $508M Sale of Non-Core Portfolio
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American Campus Communities, Inc. (NYSE: ACC), the nation’s largest owner and manager of high-quality student housing properties, today announced that on November 15, the company closed on the sale of a non-core portfolio of 19 assets containing 12,083 beds for $508 million to Saban Real Estate Group. The transaction included the prepayment of $197.3 million of secured mortgage debt and represented an average economic cap rate of 6.1 percent based on in-place rental revenue, escalated trailing-12 operating expenses and historical average capital expenditures. American Campus Communities will provide third party management for 11 of the assets during a transition period up to approximately five months.
Including two non-core properties sold during the first quarter of 2016, the company has completed the disposition of approximately $582 million of non-core properties during 2016 with the proceeds being recycled into the company’s $603 million high-yielding 2017 development pipeline. Also, as previously communicated, the company continues to market two remaining non-core assets with a potential sale occurring in early 2017.
“We are pleased to have completed the sale of this portfolio with the proceeds earmarked for reinvestment into our highly accretive development pipeline,” said Bill Bayless, American Campus CEO. “With the sale of these non-core assets, which were all previously acquired as part of larger portfolio acquisitions, we have transformed our portfolio into one consisting almost entirely of core assets. Our overall proximity to campus improves to a median distance to campus of only one-tenth of a mile, from two-tenths of a mile, and our portfolio now contains only two remaining assets located more than one mile from campus. Additionally, with the sold assets averaging 16 years old, the age of our portfolio improves to an average of 8.5 years. We are very excited about the internal growth opportunities offered by our refined best-in-class core portfolio.”
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