American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager and developer of high-quality student housing properties in the U.S., today announced the acquisition of The Block, a six-community off-campus property consisting of 1,555 beds. The Block is located within the West Campus submarket and serves students attending The University of Texas at Austin.
With the acquisition of The Block and other recent transactions – including the Campus Acquisition transaction that is expected to close in mid-September and features The Castilian, The Texan, and The Vintage; the development of the 17-story premier freshman residence hall, The Callaway House Austin, opening Fall 2013; and the recent acquisition of 26West – American Campus will own or have under construction approximately 4,270 student housing beds in the West Campus submarket. As part of its major expansion in the UT off-campus housing market, American Campus has also become the official student housing sponsor of UT Athletics.
American Campus was founded in Austin in 1993 with a single student housing management contract and four employees. The company has grown to own and manage 154 properties in 85 university markets and has a total market capitalization of $5.6 billion. Prior to the company’s recent reentry into the market, American Campus has not owned or managed properties in the Austin market since 2005.
“We have been waiting patiently for the right opportunities to come back strong into our beloved hometown of Austin,” said Bill Bayless, American Campus CEO. “The Block, along with our other Austin communities, is in line with our strategic plan to own differentiated Class A assets within walking distance to campus in submarkets with high barriers to entry. We are excited to be offering a variety of high-quality products and price points that serve the broadest range of UT students and parents.”
The Block, built in 2007-2008, is currently 97 percent occupied. Each of the six communities that comprise The Block offers a parking garage, a rooftop lounge, a fitness center, and a variety of floor plans. There is also a centralized community center featuring a game room, business center, and pool with sun deck for use by all residents.
The units contain a washer and dryer, stainless steel appliances, granite countertops, cherry wood cabinets, stained concrete floors, nine-foot ceilings, and ceiling fans. The projected year-one cap rate for the project (inclusive of $3.5 million in upfront capital for upgraded amenities and deferred maintenance) is 5.9 percent nominal and 5.6 percent economic.
Total enrollment for the 2012 fall term at The University of Texas at Austin, the nation’s fifth largest university, is projected to be approximately 51,500 students, which is the second largest in school history. UT currently has about 7,500 on-campus beds with approximately 5,000 beds occupied by freshmen. The 2012 freshmen class is expected at 8,000 students, the largest in the history of UT.
About American Campus Communities
American Campus Communities, Inc. is the largest developer, owner and manager of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. American Campus Communities owns 125 student housing properties containing approximately 77,700 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consists of 154 properties with approximately 101,600 beds. Visit americancampus.com or studenthousing.com.
In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which American Campus operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.