2/26/2016 | By Sarah Borchersen-Keto
Last month the student housing REIT completed a secondary equity offering that netted more than $200 million for EdR. Churchey said the offering was well-received and reflected the company’s many accomplishments of the last few years.
“We’re seeing a great number of opportunities to develop on- or off-campus assets that we’ll own for our own account,” Churchey said.
Churchey also explained the appeal of the student housing REIT model. By partnering with EdR, universities can take advantage of the REIT’s funds to build a new residence hall or apartments, and it’s a “win-win” for both parties, he said.
Churchey also commented on EdR’s plans to dispose of $150 million to $200 million of assets in 2016. Finding buyers for student housing assets would have been a challenge 10 years ago, he said. Today, however, student housing has moved from a real estate niche to an accepted institutional investment alternative.
Since 2010, EdR has sold 26 assets, “so there are plenty of buyers that help with good efficient pricing,” Churchey said.