Education Realty Trust Buys $38M University Village

RIVERSIDE, CA-Education Realty Trust Inc. has acquired the 90% interest held in 554-bed University Village Towers by its joint-venture partner, based on a total property value of $38.1 million. The student housing complex is adjacent to the University of California, Riverside and is pre-leased for the 2011-2012 academic year at 87%, according to an announcement from Memphis-based Education Realty Trust, a REIT that specializes in student housing.

The REIT notes that the pre-leasing this year is 10 percentage points ahead of the previous year. “Based on this pre-leasing and other information, EDR’s purchase price represents a 6.3% economic cap rate on expected next twelve months net operating income,” the company says.