Campus Crest closes purchase of JV properties

Campus Crest Communities announced it has closed on the purchase of the remaining 50.1% interest in The Grove at Moscow, Idaho, and the remaining 80.0% interest in The Grove at Valdosta, Georgia, owned by its joint venture partner, Harrison Street Real Estate. The company utilized approximately $43.5M of proceeds from its recent common equity offering to fund the $16.2M purchase price and retire $27.3M of mortgage indebtedness secured by the properties. Based on management’s current estimate of the properties’ next 12 months net operating income, the acquisitions imply a nominal capitalization rate of approximately 7.2%. With the completion of this acquisition, the company has purchased wholly-owned interests in seven properties from HSRE and increased its wholly-owned operating assets from 27 to 29 properties. The company continues to own interests in four additional operating assets held in joint ventures with HSRE.