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Penn State Housing Trio Backs JV's $71M Loan

STATE COLLEGE, PA-American Campus Communities and Fidelity Real Estate Group use a 2,132-bed piece of their GMH portfolio buy to collateralize the GE-funded loan.

By Brianne Harrison | Updated on August 04, 2008

STATE COLLEGE, PA-GE Real Estate has provided a $71-million, three-year fixed-rate loan for three student housing complexes near Pennsylvania State University. The properties are owned by a joint venture between American Campus Communities and an institutional fund with Fidelity Real Estate Group, which recently acquired GMH Community Trust Inc.’s student housing portfolio for $1.4 billion.

Fifteen properties that were acquired from the Newtown Square, PA-based GMH were transferred to the joint venture between Austin-based ACC and Fidelity of Boston. Under the agreement, ACC provides property management services and retains a minority interest. To fund the acquisition, Austin-based ACC sold 4.5 million shares of common stock.

The JV has secured a loan from GE Real Estate North America Lending of Norwalk, CT. The loan’s collateral is a trio of 96%-leased complexes that house 2,132 students. The properties are the 752-bed State Park College at 348 Blue Course Dr., 696-bed Lions Crossing at 201 Vairo Blvd. and 696-bed Nittany Crossing at 601 Vairo Blvd.

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