March 27, 2020
American Campus Communities (ACC) said it had completed the sale of The Varsity, a 901-bed property serving students attending the University of Maryland in College Park, MD. The property was sold for $148 million; the buyer was not disclosed.
The Austin, TX-based student housing REIT said the sale represented an economic cap rate of 4.1% based on in-place rental revenue, escalated trailing-12 operating expenses and historical average capital expenditures. ACC acquired a 79.5% controlling interest in the newly-opened Varsity in a 2012 transaction that valued it at $121.5 million.
The sale completed the company’s planned 2020 capital sourcing transactions. Earlier this month, ACC expressed some uncertainty over the potential impact of the coronavirus pandemic on its overall business, yet reaffirmed that it expected to finalize the disposition during the first quarter.
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