MEMPHIS, Tenn., Aug. 18, 2008 (GLOBE NEWSWIRE) -- Education Realty Trust, Inc. (NYSE:EDR), a nationwide leader in the ownership, development and management of student housing, today announced that the Company will own new housing to be built on the campus of Syracuse University. This is the first investment of a major program the Company has created to build and acquire housing facilities located directly on university campuses across the country.
"We are extremely pleased to initiate our private on-campus investment program at Syracuse University, a strong educational institution with a rich and deep history. On-campus development utilizing the shareholder capital entrusted to us is very much a priority. Opportunities to invest in facilities on-campus are becoming more plentiful and provide an attractive investment for our shareholders. We intend to continue to use our nationwide, on-campus experience and relationships to further expand our on-campus private investment business," commented Paul Bower, CEO of Education Realty Trust.
"Universities are turning to private investment in order to achieve new housing that is financed off their balance sheet. The use of private equity and debt positively impacts a university's borrowing capacity; thereby, leaving the institutions' credit available to finance academic buildings rather than housing," added Mr. Bower.
Allen & O'Hara Development Co., the real estate development subsidiary of Education Realty Trust, has been a leader in third-party, on-campus development, having completed $1.3 billion of on-campus development since 2000.
The new housing, located on Syracuse's South Campus, will have 130 units, providing accommodations for 432 students. The units will be configured to contain 2 and 4 private bedrooms with private bathrooms for each student. The fully furnished apartment units will include a living room, dining area and a full kitchen. The new community will include a clubhouse building containing extensive academic and recreational amenities. There will also be on-site parking and a pick-up/drop-off site at the clubhouse for the campus bus system.
Education Realty will own and manage the residential community under a long-term Ground Lease from Syracuse University. Construction costs will be approximately $28 million, and the building is expected to be ready for occupancy for the 2009-2010 school year.
About Syracuse University
Syracuse University is a premier institution of higher education located in Syracuse, NY, dedicated to faculty excellence and scholarly distinction, attracting and supporting enrollment of 19,084 students.
About Education Realty Trust
Education Realty Trust, Inc. (NYSE:EDR) is a self-administered, self-managed real estate investment trust that owns, develops and manages high-quality student housing communities throughout the United States. Led by a team with over 200 years of shared industry experience, EDR is one of America's largest owners and operators of collegiate student housing. The Company has ownership and management interests in 69 properties with 41,329 beds in a total of 21 states. For more information please visit the company's Web site at www.educationrealty.com.
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