American Campus Communities, Inc. (
a real estate investment trust (REIT), recently acquired 15 student
housing properties from Campus Acquisitions for $627.0 million. The
transaction consists of approximately $380.9 million in cash, the
assumption of approximately $231.1 million of outstanding mortgage
debt, and the issuance of 325,098 operating partnership units worth
AMER CAMPUS CTY (ACC): Free Stock Analysis
EDUCATION RLTY (EDR): Free Stock Analysis
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The acquired properties consist of a total of 6,579 beds. Out of
the 15 properties acquired, 11 are located in existing American
Campus markets and 4 are located in four new tier I markets. The
acquisition is in line with the American Campus strategy of
acquiring premium quality student housing properties in submarkets
which have high barriers to entry. The acquired properties are
located in close proximity to their associated campus with a
combined distance to campus of 0.23 miles.
Besides implementing its proprietary operating platform in
all the properties, American Campus expects to invest $13.7 million
in capital improvements in the acquired properties. The investment
is aimed at enhancing rental rates and revenue growth. With this
deal, the company expects to achieve synergistic benefits within
the seven markets where it already has its presence and significant
accretion in asset value.
American Campus is the largest developer, owner and manager of
premium-quality student housing communities in the United States.
The company primarily engages in development, ownership and
management of high-quality student housing communities.
Presently the company wholly owns 140 student housing properties
containing approximately 84,300 beds.
American Campus currently has a Zacks #3 Rank, which translates
into a short-term Hold rating. We also have a long-term Neutral
recommendation on the stock. One of its competitors,
Education Realty Trust, Inc (
also holds a Zacks #3 Rank.