American Campus Communities, Inc. announced its intent to purchase 19 new property assets from affiliates of Kayne Anderson Capitol on Oct. 25.
One of these 19 properties is The Lofts of Kennesaw with a total of 795 beds. If ACC goes through with the purchase agreements, The Lofts and other properties will be purchased at a total of $862.8 million.
“Approximately 75 percent of the select portfolio is an average of 0.3 miles from campus in submarkets with barriers to entry,” ACC CEO Bill Bayless said in the company’s press release. “We are excited about this opportunity to create substantial value by overlaying our operating platform on this portfolio.”
The proposed purchase agreement is composed of 19 properties being with 3.96.2 million of outstanding mortgage debt and $466.6 million in cash. The mortgage debt has a weighted average interest rate of 5.28 percent and a weighted average term to maturity of 8.3 years.
The operations of the properties will also be taken over by ACC which for The Lofts is a job still being done by Capstone Collegiate Communities. ACC also owns and operates properties located near UGA, Clark Atlanta University and Valdosta State.
“We believe these 19 select assets offer high-quality products and locations in Tier 1 markets,” Bayless said in the press release. Ninety percent of the beds in this acquisition were in the last four years, including The Lofts.
For more information visit ACC at their website americancampus.com. The press release was issued on Oct. 25 and no formal date has been set for the completion of the purchase agreement yet.
