Education Realty (EDR) Closes On-Campus Project Worth $450M

Education Realty Trust (NYSE:EDR) announced the delivery of Lewis Hall Honors College and University Flats to the University of Kentucky, completing the extensive on-campus revitalization development.

University Flats will house graduate, professional and upper-level undergraduate students in separate living communities. The seven-story building encloses 771 beds in 312 apartments. These constructions range from studio formats to four-bedroom apartments. Each apartment has a kitchen and is well furnished.

On the other hand, the compounds of Lewis Honors College will accommodate 350 students to foster a live-learn environment. With the university’s top-tier students housed in it, the compound can stand out as a learning hub.

In 2011, the University of Kentucky entered into a partnership with Education Realty Trust to construct, finance and manage its on-campus housing revitalization program. The company constructed approximately 200 learning spaces and 6,850 new beds to create a progressive campus.

According to Eric N. Monday, the university's executive vice president for finance and administration, these housing compounds will focus on the success of students ‘through modern, technology-rich living spaces that foster a sense of community’.

This project has improved the recruiting and retention rates for the university, in addition to student success. The project, worth $450 million, has been executed in five phases. It was entirely funded through Education Realty’s On-Campus Equity Plan – The ONE PlanSM – giving the university access to a single trusted partner. While Education Realty has been given a long-term lease to maintain and manage these communities, the university will provide residential life for the remaining part of the 75-year ground lease.

Unlike residential REITs, including AvalonBay Communities, Inc. (NYSE:AVB) , Equity Residential (NYSE:EQR) and Equity Lifestyle Properties, Inc (NYSE:ELS) , whose rental units are open for leasing to all, student housing REITs lease their real estates to students. Hence, such real estates are generally required to be set up within or in places close to colleges and universities, and usually enjoy full occupancy.


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