Education Realty Trust Inc.
) ("EdR"), a real estate investment trust (REIT), recently
disclosed the addition of 92 apartments next to the University of
Connecticut. The company is planning the development of a third
phase at The Oaks on The Square in Storrs Center, beside the
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Named as Phase 1C, this third phase has a projected development
cost of $12.8 million. The project, situated next to Phase 1A and
1B, will be completed by 2014. It will be owned and managed by
The prior two phases, which have a total of 322 apartments (503
beds) are fully occupied. The Phase 1C will result in another 92
apartments (116 beds), bringing the total number to 414
apartments (619 beds).
Situated the edge of the University of Connecticut, tenants
of The Oaks on The Square have easy access to sporting events,
theater, live music, restaurants and shopping center. Moreover,
the new phase to be developed will offer modern amenities
including high-speed Internet and Wi-fi access.
The development is aimed to strengthen EdR's market dominance
with a significant presence at the University of Connecticut.
With 8,000 graduate students and 18,000 undergraduate students
being enrolled at the University of Connecticut's main campus,
the new phase is expected to enjoy decent leasing activity.
The move further reinforces EdR's policy of investing in the
high-growth collegiate housing industry as it focuses on
providing premium quality student housing facilities.
EdR is one of the largest owners, developers and managers of
collegiate housing in the U.S. It also provides third-party
management services, including residence life and student
development, marketing, leasing administration, strategic
relationships and accounting services for student housing
communities owned by educational institutions.
The company owns or manages 67 communities in 24 states with more
than 37,000 beds. The ideal acquisition targets of the company
are generally located in markets that have stable or increasing
collegiate populations and high barriers to entry.
EdR currently holds a Zacks Rank #3 (Hold). However, other REITs
that are performing better and deserve a look include
Select Income REIT
), which carries a Zacks Rank #1 (Strong Buy) and
Camden Property Trust
CBRE Group Inc.
) with a Zacks Rank #2 (Buy).