Student Housing: Education Realty spends $23M on apartments near University of Virginia, plans more development

via Memphis Business Journal

Education Realty Trust Inc. has purchased two housing complexes adjacent to the University of Virginia in Charlottesville for $23 million.

Education Realty purchased the communities from Wade Apartments, one of the largest student housing owners in Charlottesville.

Wade and Education Realty (NYSE: EDR) also are working on the potential development of 300-bed housing community adjacent to UVA grounds. Wade currently owns that land.

“We are pleased to be further investing at a dynamic university such as UVA. These properties have formidable barriers to entry which should yield long-term value for our shareholders,” said Randy Churchey, president and CEO of Education Realty. “We hope to collaborate with Wade Apartments on other opportunities, including possible future development projects.”

The two complexes Education Realty purchased — Wertland Square and Jefferson Commons — are both within walking distance of UVA. They are currently 100 percent occupied and 100 percent pre-leased for next school year.

Developed in 2006, Wertland Square is a 50-unit, 152-bed complex with average monthly rentals of $708 per bed. Developed in 2007, Jefferson Commons is a 22-unit, 82-bed complex with average monthly rentals of $578 per bed.

The new purchase is Education Realty’s latest activity at UVA. It purchased another UVA housing complex, the 641-bed GrandMarc at the Corner, in October for $45.5 million.

Memphis-based Education Realty is a real estate investment trust focused on owning, developing and managing collegiate housing. It owns or manages 56 communities in 23 states with nearly 34,000 beds.

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