Campus Crest Communities, Inc. today announced it has closed on the purchase of the remaining 50.1% interest in The Grove at Moscow, Idaho, and the remaining 80.0% interest in The Grove at Valdosta, Georgia, owned by its joint venture partner, Harrison Street Real Estate. The Company utilized approximately $43.5 million of proceeds from its recent common equity offering to fund the $16.2 million purchase price and retire $27.3 million of mortgage indebtedness secured by the properties.

Based on management's current estimate of the properties' next 12 months net operating income, the acquisitions imply a nominal capitalization rate of approximately 7.2%.

With the completion of this acquisition, the Company has purchased wholly-owned interests in seven properties from HSRE and increased its wholly-owned operating assets from 27 to 29 properties. The Company continues to own interests in four additional operating assets held in joint ventures with HSRE.

The table below provides details on the properties:

        
        Property                University Served            Year Opened  Miles to   Total Enrollment   Occ. (3/31/12)
                                                                           Campus       (Fall '11)
        ---------------------   -------------------------   -----------   --------   ----------------   --------------
        The Grove at Moscow     University of Idaho             2009         0.5          11,043             97.4%
        The Grove at Valdosta   Valdosta State University       2011         1.9          13,089             98.8%
        

"Selective acquisitions of the HSRE joint venture assets continue to be an excellent avenue for our Company to grow its wholly-owned portfolio. These assets, which the Company developed and operates, have demonstrated strong pre-leasing and operational results, and are located at universities we believe have attractive market characteristics," said Ted W. Rollins, the Company's Co-Chairman and Chief Executive Officer. "We are excited about our progress this year from both an operational and capital perspective. Our preferred offering in February provided funding for our academic year 2012/2013 development pipeline, and our recent common offering provided the flexibility to purchase these assets and reduce our leverage, on a net-debt-to-enterprise-value basis, by over 750 basis points, which we believe is responsible given the macroeconomic backdrop."