American Campus Communities (ACC) Reports $508M Sale of Non-Core Portfolio
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
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.”
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Linde to Resume Talks with Praxair (PX); Appoints Belloni as CEO
- Vera Bradley (VRA) Tops Q3 EPS by 1c; Offers Light Q4 Outlook; Enters New Licensing Agreements
- Nu Skin Enterprises (NUS) CEO Hunt to Depart in mid-2017; Transition Plan Announced
Create E-mail Alert Related CategoriesCorporate News, Management Comments, Mergers and Acquisitions
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!