MEMPHIS, Tenn., Sept. 27, 2006 (PRIMEZONE) -- Education Realty Trust, Inc. (NYSE:EDR) today announced it has entered into a joint venture to purchase The Reserve on Stinson, an off-campus collegiate community near the University of Oklahoma in Norman, Oklahoma.
The purchase price for the 612-bed community is $31 million. Due diligence has been completed. The transaction is expected to close within the next 60 days.
The purchase is structured in a joint venture with Walton Street Capital, L.L.C., a private real estate investment firm based in Chicago. EDR will own a minority interest in the venture with Walton Street.
The EDR property management subsidiary, Allen & O'Hara Education Services, Inc. (AOES), has managed The Reserve on Stinson since its initial opening and AOES has been engaged by the joint venture to manage the community. EDR and its affiliates have worked with Walton Street during the past three years and AOES has successfully repositioned a community at another university for Walton Street.
"We are pleased to engage in a second strategic purchase and joint venture with Walton Street Capital. The Reserve on Stinson is an excellent, Class A community. And our Walton Street relationship is valuable to us," said EDR Executive Vice President and Chief Investment Officer Craig Cardwell. "We expect continued success and strong performance for this community."
The first of three phases at The Reserve on Stinson opened during the fall semester in 2004. Located approximately one-half mile from the Norman campus, the community is comprised of 204 apartments on 18 acres. The property offers a mix of fully furnished two-, three-, and four-bedroom apartments and has a swimming pool, fitness center, computer center, study areas and recreation area. The Reserve on Stinson is approximately 99 percent leased for the fall 2006 academic term, which began this past month.
OU Norman campus enrollment now approaches 27,000 and has grown 3.8 percent per year for each of the past few years. Enrollment is expected to reach 29,000 students by 2010. The university has invested more than $1 billion dollars in campus improvements since 1994 in order to enhance facilities and keep pace with the anticipated demands of enrollment growth.
"This transaction reflects our strategy of targeting quality assets in close proximity to vital, growing universities and positioning them for increased success," said Cardwell. "And this second joint-venture with Walton Street is a natural outcome of our determination to extend our relationships with sophisticated real estate investors who have real, hands-on student housing ownership experience."
Earlier this month, EDR announced the completion of the $45 million purchase of University Village Towers, a 525-bed collegiate community one half mile from the campus of the University of California, Riverside, in a joint venture with Walton Street Capital.
About Education Realty Trust
Education Realty Trust, Inc. (NYSE:EDR) is a real estate investment trust that owns, manages and develops high-quality collegiate student housing. Led by a team with more than 170 years of shared industry experience, EDR is one of America's largest owners and operators of collegiate student housing. Its portfolio includes 36,960 beds at 60 properties in 21 states. For more information please visit the company's Web site at www.educationrealty.com.
About Walton Street Capital
Based in Chicago, Walton Street Capital, L.L.C. is a private real estate investment company that has received total equity commitments of $3.4 billion through its five opportunistic and value-added funds, of which $2.3 billion has been invested or committed to date with a gross asset cost in excess of $8.0 billion. Fund investors include government and corporate pension funds, foreign pension funds, endowments, foundations, banks, insurance companies, high net worth individuals and the principals of Walton Street. Walton Street invests across all property types, both domestically and internationally. For more information, please visit the company's Web site at www.waltonst.com.
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