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Place, Education Realty End 13-Asset Lease Deal

MEMPHIS-Education Realty Trust receives a payment of $5.8 million for Place's early termination of the lease.

By Natalie Keith | Updated on February 07, 2008

MEMPHIS-Atlanta-based Place Properties has negotiated an early termination of a lease with 13 student housing properties owned by locally based Education Realty Trust Inc. Place had been leasing the properties from Education Realty since January 2006.

As a result of the termination, Allen & O’Hara Education Services Inc. began managing the properties on Feb. 1. Under the lease termination, Education Realty will receive a one-time payment of $5.8 million. The company will begin recognizing the actual net operating income of the properties beginning Feb. 1.

Education Realty Trust CFO Randy Brown tells GlobeSt.com that the company acquired the properties from Place Properties in January 2006 and leased them back to Place as part of the sale agreement. The sale-leaseback deal carried a $195-million price tag and was 94.3% leased at the time of the sale, as GlobeSt.com previously reported.

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