Student Housing Business

JUL-AUG 2018

Student Housing Business is the voice of the student housing industry.

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NE WS IN BRIEF July/August 2018 10 PEAK CAMPUS AWARDED MANAGEMENT OF TWO COMMUNITIES AT THE UNIVERSITY OF INDIANAPOLIS Indianapolis — Peak Campus has been awarded management of two student housing commu- nities developed by a partner- ship between Strategic Capital Partners and the University of Indianapolis. Assigned proper- ties include Greyhound Village, a 480-bed community located on the northwest corner of campus adjacent to the Krannert Me- morial Library; and University Lofts, a 300-bed community cur- rently under construction adja- cent to campus. Greyhound Vil- lage offers one-, two-, three- and four-bedroom, fully furnished units with bed-to-bath parity. Shared amenities include a fit- ness center; clubhouse with lounge areas and game equip- ment; and private study rooms. University Lofts will deliver in two phases in January and July of next year. The community will offer one-, two- and four- bedroom, apartment-style units to undergraduate and graduate students. campus platform being an integral component of what the interest was in our company. I have spoken to a number of our university partners; they are excited. One of the things they did not like about us as a public company was the volatility of the share price. They knew that possibly had impacts to our decision making. When we explain who Greystar is, as well as the relationship with Blackstone in this deal, the univer- sities are excited about that large amount of perpetual capital. With any change there is a little anxiety and I am sure they all have that. Overwhelmingly, though, the reaction has been very positive. SHB: When we spoke with Bob Faith [CEO of Greystar], one of the first things he spoke about was the upside potential of the on-campus platform that EdR has. Churchey: Bob has built a fabulous organization over the past 20-plus years. Greystar's access to capital is great. We expect that as they take- over, they will be able to grow the on-campus division at a much faster pace than it was before. SHB: Do you know any plans for the future? On-site staff will likely remain as in most mergers, but what about your corporate staff? Churchey: Those details have yet to be worked out. Remember what Greystar has in the way of student housing versus what they have just acquired. They own about 2,000 beds in the U.S. today and manage about 18,000. We have 40,000 beds under ownership. Everything we have spoken to them about is about combining the strengths of the two organizations. EdR has such a higher number of U.S.-based beds; the expectation is that they will build upon that. Our employees here in Memphis are anxious, as you would expect them to be. Everything we have worked on so far seems to continue with our Memphis staff and team augmented by Greystar's staff. SHB: In your opinion, what did Greystar like about EdR's portfolio? What do you think attracted them to the properties? Churchey: To Wall Street, we have spoken so often about our port- folio. Our portfolio, in our opinion, is second to none. The average distance to campus of our properties is one-tenth of a mile; the aver- age age of a property is seven years; and the average enrollment at the universities we serve is over 27,000 students. We are at the big, name brand universities and we are close to campus with assets that are close to campus and fully amenitized. The portfolio was obviously the main attraction. The second attraction is our on-campus platform. EdR has strong relationships with universities and merchant developers. Greystar sees that as a great opportunity to grow. SHB: What are the next steps in the merger process? Churchey: There are lots of legal documents and SEC filings that have to take place. The closing is targeted for late third quarter, early fourth quarter. In the meantime, it is business as usual. We have 10 develop- ment deliveries this August; we still have to do final leasing. We also have to do all the other stuff that goes with running the business. We will get into the details of the combination so we have a coherent struc- ture that continues our ability to grow.

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