CCG Starts $82.5 Million of New Projects for 2013/2014 Delivery
One On Campus at Colorado State & Projects at Ball State and University of Oklahoma
Closes $52.1 Million of Construction Financing and Forms New Joint Venture
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Campus Crest Communities, Inc. (CCG) (the Company) today announced commencement of a new on campus development at Colorado State University in Ft. Collins, Colorado and projects at Ball State University in Muncie, Indiana and The University of Oklahoma in Norman, Oklahoma. The three projects are expected to be delivered for the 2013/2014 academic year and have total estimated project costs of $82.5 million. The Ft. Collins and Muncie properties are wholly-owned, while the Norman property is being developed in a joint venture with Harrison Street Real Estate (HSRE). The Company will own 20.0% of the Norman project.
All developments will feature the Companys ninth generation prototype with 100% bed-bath parity, attractive furnishings, high-end amenities including a resort-style swimming pool, a game room, a fitness center and a library, along with the Companys leading residence life program.
These are the first three projects of this years development pipeline. They are located an average of approximately 0.2 miles from campus and represent our ninth generation project prototype, which among other things has a higher average bed count than the existing portfolio, our newest high speed internet configurations (100 megabytes or greater) and various other improvements designed to make college living at a Grove property an unparalleled experience, said Ted W. Rollins, Co-Chairman and Chief Executive Officer of Campus Crest Communities. As a result of continued improvements in the efficiencies of our vertically integrated platform, we continue to increase our quality offerings to the students at attractive asset costs. Our on campus property at Colorado State is part of our continued approach to pursue on campus opportunities when it makes economic sense, and we are excited to add this one to our portfolio. Our teams are working on finalizing the entitlement process for the remaining 2013/2014 academic year projects, and we anticipate announcing these later this year.
Details of the properties are as follows:
|2013/2014 Academic Year Developments|
|The Grove at Ft. Collins, CO2||Colorado State University||26,735||On-Campus||218||612||$||31.8||$||19.1|
|The Grove at Muncie, IN||Ball State University||18,241||0.1||216||584||24.3||14.6|
|The Grove at Norman, OK||University of Oklahoma||23,850||0.6||224||600||$||26.4||$||18.4|
1 All data is as of fall 2011; from school websites
2 Previously disclosed by the Company on Q1 2012 earnings call
3 Total Enrollment and Distance to Campus are averages
Select highlights for the projects include:
- The Grove at Ft. Collins, CO: Located on land owned by Colorado State University, the property is the first fully-amenitized housing option on campus in the market and marks the Companys most recent on campus venture.
- The Grove at Muncie, IN: Situated 0.1 miles from campus on a very well-located site providing convenient, pedestrian friendly access to Ball State University. The project will be the first student housing option in the market that provides lifestyle-focused management and resort-style amenities.
- The Grove at Norman, OK: Provides high visibility and easy access to the University of Oklahoma campus, in a market with favorable supply and demand characteristics.
The Company and the joint venture have closed on a total of $52.1 million of construction financings at an average spread of 238 basis points over LIBOR for the three newly announced projects. The Company intends to finance its share of the remaining construction costs through its revolving credit facility.
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading developer, builder, owner and manager of high-quality, purpose-built student housing properties located close to college campuses in targeted U.S. markets. The Company is a self-managed, self-administered and vertically-integrated real estate investment trust which operates all of its properties under The Grove® brand. The Company owns interests in 33 operating student housing properties containing approximately 6,324 apartment units and 17,064 beds. Since its inception, the Company has focused on customer service, privacy, on-site amenities and its proprietary residence life programs to provide college students across the United States with a higher quality of living. Additional information can be found on the Company's website at http://www.campuscrest.com.
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposed of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as may, will, should, expects, intends, plans, anticipates, believes, estimates, predicts or potential or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements in this press release include, among others, statements about the timing, costs and features of the three projects expected to be delivered for the 2013/2014 academic year. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Companys control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Companys good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Companys future results to differ materially from any forward-looking statements, see the risk factors discussed in the Companys most recent Annual Report on Form 10-K, as updated in the Companys Quarterly Reports on Form 10-Q.
Campus Crest Communities, Inc.
Investor Relations, 704-496-2571
Source: Campus Crest Communities, Inc.Copyright Business Wire 2012