Property Acquisitions

12 Months Ended

Dec. 31, 2012

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

4.    Property Acquisitions

Operating Property Acquisition

In July 2012, we acquired the remaining ownership interests in The Grove at Moscow, Idaho, and The Grove at Valdosta, Georgia, for approximately $16.8 million, and repaid the mortgage debt secured by these properties. Prior to this transaction, The Grove at Moscow, Idaho, was owned by HSRE-Campus Crest I, LLC, of which we owned 49.9% and Harrison Street Real Estate Capital (“HSRE”) owned the remaining 50.1%, and The Grove at Valdosta, Georgia, was owned by HSRE-Campus Crest IV, LLC, of which we owned 20.0% and HSRE owned the remaining 80.0%. Prior to this transaction, we accounted for our ownership interest in the two properties under the equity method. In connection with recording our purchase of the remaining interests in the properties, we recognized a net gain of approximately $6.6 million related to the re-measurement of our previously held equity interests in the properties at the acquisition date. The gain is included in the gain on purchase of previously unconsolidated entities line item in the accompanying consolidated and combined statements of operations and comprehensive income (loss).

The following table is an allocation of the purchase price for The Grove at Moscow and The Grove at Valdosta (in thousands):

Land	$	3,401
In-place leases		388
Buildings and improvements		49,911
Furniture and fixtures		1,708
Other		974
Debt repaid at time of purchase		(27,299	)
		29,083
Less estimated fair value of interest owned prior to acquisition		(12,320	)
	$	16,763

In December 2011, we acquired from HSRE the remaining interest in Campus Crest at Huntsville I GP, LLC and Campus Crest at Huntsville II GP, LLC which own The Grove at Huntsville, Texas and Campus Crest at Statesboro, LLC, which owns The Grove at Statesboro, Georgia for approximately $13.6 million, and repaid the mortgage debt secured by these properties. Prior to this transaction, The Grove at Huntsville and The Grove at Statesboro were wholly owned by a real estate venture of which we owned 49.9% and HSRE owned the remaining 50.1%. Prior to the acquisition of this interest, we accounted for our ownership interest in the two properties under the equity method. Subsequent to our acquisition of these interests, we consolidated the results of operations of The Grove at Huntsville and The Grove at Statesboro. In connection with recording our purchase of the remaining interests in the properties, we recognized a gain of approximately $3.2 million related to the re-measurement of our previously held equity interests in the properties at the acquisition date. The gain is included in gain on purchase of previously unconsolidated entities in the accompanying consolidated and combined statements of operations and comprehensive income (loss).

The following table is an allocation of the purchase price for The Grove at Huntsville and The Grove at Statesboro (in thousands):

Land	$	4,008
In-place leases		913
Buildings and improvements		43,446
Furniture and fixtures		1,633
Other		410
Debt repaid at time of purchase		(28,764	)
		21,646
Less estimated fair value of interest owned prior to acquisition		(8,042	)
	$	13,604

In-place lease intangible assets are amortized on a straight-line basis over the average remaining term of the underlying leases. Amortization expense was approximately $1.0 million, $0.9 million and $0.3 million for the years ended December 31, 2012 and 2011 and for the period from October 19, 2010 through December 31, 2010, respectively. The amortization of intangible assets is included in depreciation and amortization expense in the accompanying consolidated and combined statements of operations and comprehensive income (loss).

Acquisition of Properties Under Development

During the year ended December 31, 2012, we acquired land at three project sites that are currently under construction. The purchase price for these three sites totaled approximately $6.3 million. The project sites are located in Muncie, Indiana, Pullman, Washington and Indiana, Pennsylvania. The consideration paid for these sites is recorded as development in process on the accompanying consolidated balance sheet at December 31, 2012.

During the year ended December 31, 2011, we acquired land at four project sites. The purchase price for these four sites totaled approximately $15.9 million. The project sites are located in Fayetteville, Arkansas, Laramie, Wyoming, Auburn, Alabama and Flagstaff, Arizona. In December 2011, the Company contributed its investment in the land, development and construction in the Fayetteville, Arkansas and Laramie, Wyoming projects to a joint venture with HSRE (see Note 5).