Education Realty Trust Inc. (EDR), a real estate investment trust (REIT) that owns, develops, and operates collegiate housing properties across the U.S., has recently formed a joint venture with LeylandAlliance LLC, a leading real estate developer, to develop the first two phases of Storrs Center, a mixed-use town center project adjacent to the University of Connecticut.
The project would include new retail, restaurant, office, and residential units within a planned community of pedestrian walkways, green spaces and conservation areas. The entire cost of development is expected to be $220 million, while the first two phases of the project is expected to cost approximately $60 million.
The first two phases of the mixed-use project would include 290 residential apartment units, each of which will feature a private laundry, wood floors, granite countertops, and stainless steel appliances besides other upscale amenities. The residential development is expected to serve the pent-up demand for housing facilities for graduate students, staff, and alumni of the university.
Education Realty would develop, own, and manage the residential units, while the retail and commercial space spanning approximately 70,000 square feet would be developed and operated by LeylandAlliance LLC. The apartments would be developed adjacent to the university campus, with adequate parking options available for residents.
Education Realty is one of the leading REITs in the U.S., with an expertise in university town housing. We maintain our Neutral recommendation on Education Realty, which currently has a Zacks #2 rank that translates into a short-term Buy rating and indicates that the stock is expected to outperform the overall U.S. equity market for the next 13 months.
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