Campus Crest Communities Announces Two Development Projects
- Kicks off Construction for 2012/2013 Academic Year Deliveries -
- Closes $31.5 Million of Construction Financing -
CHARLOTTE, N.C., Jul 26, 2011 (BUSINESS WIRE) -- Campus Crest Communities, Inc. (NYSE:CCG), a leading developer, builder, owner and manager of high-quality, purpose-built student housing under The Grove(R) brand, today announced two development properties for delivery in the 2012/2013 academic year. The Company is developing wholly-owned properties at Auburn University in Auburn, Alabama and The University of Maine in Orono, Maine, with total estimated project costs of $51.6 million.
"We are excited to announce our first two development projects for delivery in the 2012/2013 school year. The Auburn property will be the first new apartment complex in the market built this close to campus within the last five years, and our Orono property will be the first in that school's market to provide a full private bed and bath living option to all of its student customers," said Ted Rollins, CEO of Campus Crest Communities. "As increasing college enrollment combines with limited new supply, there will be an ongoing need for additional student housing developments. With our vertically integrated, highly scalable operating platform Campus Crest is ideally positioned to fill that growing demand as we continue to pursue additional development opportunities."
The Auburn property will have 216 units with 600 beds and will be located adjacent to the on-campus Greek housing. The total enrollment at the University in the fall of 2010 was over 25,000 students. Expected project costs are approximately $26.3 million and will be partially funded with a $16.3 million construction loan which the Company recently closed with Compass Bank. The loan carries an interest rate of LIBOR plus 295 and matures in July 2014.
The Orono property will have 188 units with 620 beds and will be located 0.5 miles from the University of Maine. The total enrollment at the University in the fall of 2010 was 11,500 students. Expected project costs are approximately $25.3 million and will be partially funded with a $15.2 million construction loan which the Company recently closed with Toronto Dominion Bank. The loan carries an interest rate of LIBOR plus 275 and matures in June 2014.
"Our development team is achieving great results in our targeted markets. We have been fortunate to make some great upgrades to this team in the last quarter both in personnel and in our service providers. Our teams are focused and energized on creating the best projects in the markets we serve," Mr. Rollins concluded.
Both developments will feature attractively furnished units with bed-bath parity, high-end amenities including a resort-style swimming pool, a game room a fitness center and a library, along with a variety of social activities that help to build a sense of community.
