MEMPHIS, Tenn., June 27, 2006 (PRIMEZONE) -- Education Realty Trust, Inc. (NYSE:EDR) today announced that construction has started on a new 354-bed collegiate community at California University of Pennsylvania, the third initiative developed by EDR affiliates at the California, Pennsylvania campus.
Allen & O'Hara Development Company LLC, EDR's development subsidiary, has teamed with National Development Company of Pennsylvania, LLC to develop new student housing on the campus in the rolling hills of the Appalachian Plateau south of Pittsburgh.
Plans call for construction of 176 units, primarily four-bedroom/two-bath and two-bedroom/one-bath units, in a four-story building, the latest in a series of new on-campus student communities. The latest phase is scheduled to open in August 2007 and is expected to be managed by the university.
"These new communities contribute significantly to campus life and enrollment demand at California University of Pennsylvania," said William W. Harris, President of Allen & O'Hara Development Company LLC. "We are replacing traditional-style dormitories built in the 1960s with modern, furnished suites which feature state-of-the-art fire suppression systems, secured access and desirable amenities such as semi-private baths, high-speed Internet access and cable television, among others."
The latest student housing assignment is the tenth project so far awarded to EDR affiliates at colleges and universities within the Pennsylvania State System of Higher Education. Under those contracts, Allen & O'Hara Development Company has completed student housing with 2,618 beds, has under construction housing with 2,481 beds and has in the planning stages housing with 1,700 beds.
Funds for demolition of four buildings, infrastructure work and the new construction come from proceeds of an $84.425 million revenue bond issue which closed on June 15, 2006. The bond issue also provided funds to refinance the university's 704-bed Phase III and 447-bed Phase IV student housing initiatives, which were also developed by the Allen & O'Hara/National Development team.
Morgan Keegan & Company, Inc. of Memphis, Tennessee, a subsidiary of Regions Financial Corporation (NYSE:RF), served as underwriter on the bond issue. The Pennsylvania Higher Education Facilities Authority is the issuer. Student Association, Inc., a Pennsylvania-based, nonprofit, tax-exempt corporation, is the borrower and owner of the community under a ground lease with the university.
Allen & O'Hara Development Company LLC and National Development Company of Pennsylvania LLC are developers of The Phase V Student Housing Facility. WTW Architects of Pittsburgh serves as the architect and NDC Builders, LLC of Pittsburgh serves as the general contractor.
About Education Realty Trust
Education Realty Trust, Inc. (NYSE:EDR) is a real estate investment trust that owns, manages and develops high-quality collegiate student housing. Led by a team with more than 170 years of shared industry experience, EDR is one of America's largest owners and operators of collegiate student housing. Its portfolio includes 36,551 beds at 59 properties in 21 states. For more information please visit the company's Web site at www.educationrealty.com.
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