Investments in Unconsolidated Entities (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Equity Method Investments [Line Items]

Schedule of Unconsolidated Investments and Debt [Table Text Block]

We are the guarantor of the construction and mortgage debt of our joint ventures with HSRE and DCV Holdings. Detail of our unconsolidated investments at December 31, 2013 is presented in the following table (dollars in thousands):

								Debt
										Weighted
				Number of Properties						Average
	Our		Year	In	Under	Our Total		Amount		Interest
Unconsolidated Entities	Ownership		Founded	Operation	Development	Investment		Outstanding		Rate		Maturity Date / Range
HSRE-Campus Crest I, LLC	49.9	%	2009	3	_	$	10,584	$	32,704	2.67	% ⁽¹⁾	2/9/2015
HSRE-Campus Crest IV, LLC	20.0	%	2011	1	_		1,915		16,839	5.75	% ⁽²⁾	3/1/2014
HSRE-Campus Crest V, LLC	10.0	%	2011	3	_		3,990		49,058	2.88	% ⁽¹⁾	12/20/2014 – 01/05/2015
HSRE-Campus Crest VI, LLC	20.0	%	2012	3	_		13,562		32,998	2.53	% ⁽¹⁾	5/08/2015 – 12/19/2015
HSRE-Campus Crest IX, LLC	30.0	%	2013	_	1		18,540		966	2.37	%⁽¹⁾	7/25/2016
HSRE-Campus Crest X, LLC	30.0	%	2013	_	2		7,783		-	n/a		n/a
CB Portfolio	67.0	%	2013	28	1		261,592		392,458	5.65	% ⁽³⁾	6/01/2014 – 10/01/2020
DCV Holdings, LP ⁽⁴⁾	20.0	%	2013	_	2		5,337		32,881	3.72	%	1/31/2014
Other	20.0	%	2013	_	_		1,535		-	n/a		n/a
Total Unconsolidated Entities				38	6	$	324,838	$	557,904	4.93	%

⁽¹⁾

Variable interest rates.

⁽²⁾

Comprised of one fixed rate loan. In January 2014, we acquired the outstanding ownership of The Grove at Denton, Texas.

⁽³⁾

Comprised of fixed rate debt.

⁽⁴⁾

In January 2014, DCV Holdings completed the acquisition of an additional re-development property in Montreal, Canada, evo à Sherbrooke, at which time our ownership percentage in CSH Montreal, the holding company that owns DCV Holdings, increased to 35% (see Note 18). Effective December 31, 2013, the debt previously held by the Company was assumed by an affiliate of the joint venture and refinanced in January 2014.

Equity Method Investment Summarized Financial Information Combined Financial Information [Table Text Block]

The following is a summary of the combined financial position of our unconsolidated entities with HSRE and other non-Copper Beech joint venture partners in their entirety, not only our interest in the entities, for the periods presented (in thousands):

	As of December 31,
	2013		2012
Assets
Student housing properties, net	$	289,797	$	143,108
Development in process		81,994		31,940
Other assets		15,341		8,214
Total assets	$	387,132	$	183,262

Liabilities and Equity
Mortgage and construction loans	$	165,445	$	92,456
Other liabilities		58,948		30,402
Owners' equity		162,739		60,404
Total liabilities and owners' equity	$	387,132	$	183,262

Company's share of historical owners' equity	$	41,390	$	14,078
Preferred investment⁽¹⁾		16,468		11,828
Net difference in carrying value of investment versus net book
value of underlying net assets⁽²⁾		5,568		(3,351)
Carrying value of investment in HSRE and other non-Copper Beech entities	$	63,426	$	22,555

(1)

As of December 31, 2013, we had a Class B member interest in The Grove at San Angelo, Texas, The Grove at Indiana, Pennsylvania, and The Grove at Conway, Arkansas, of approximately $2.7 million, $2.7 million and $6.4 million, respectively. In 2013, we acquired additional Class B member interests in two joint venture properties with HSRE that are under construction with anticipated delivery for the 2014-2015 academic year. As of December 31, 2013, our interest in The Grove at Greensboro, North Carolina, and The Grove at Louisville, Kentucky, were approximately $2.7 million and $1.9 million, respectively. As of December 31, 2012, we had a Class B member interest in The Grove at San Angelo, Texas, The Grove at Indiana, Pennsylvania, and The Grove at Conway, Arkansas of approximately $2.7 million, $2.7 million and $6.4 million, respectively. These preferred interests entitle us to a 9.0% return on our investment and do not change our effective ownership interest in these properties.

(2)

This amount represents the aggregate difference between our historical cost basis and the basis reflected at the entity level, which is typically amortized over the life of the related asset. The basis differential occurs primarily due to the difference between the allocated value to acquired entity interests and the venture’s basis in those interests and the capitalization of additional investment in the unconsolidated entity.

Schedule of Equity in Losses in the CB Portfolio [Table Text Block]

The following table is the calculation of the Company’s equity in losses in the CB Portfolio for the period from March 18, 2013 to December 31, 2013. As there are several components of the calculation, set forth below are notes corresponding to the notes included in the Company’s calculation below to further explain these components.

Net loss incurred by the CB Portfolio based on the Company’s purchase price⁽¹⁾	$	(28,729)
Campus Crest’s share of net loss		(9,215)
Campus Crest percentage of preferred payment⁽²⁾		5,663
Campus Crest losses from Copper Beech		(3,552)
Amortization of basis difference⁽³⁾		(264)
Total equity in losses in CB Portfolio	$	(3,816)

(1)

The basis of the financial statements of the CB Portfolio used in the calculation of the Company’s equity in losses for the period from March 18, 2013 to December 31, 2013 was computed using the Company’s cost basis for its investment in the CB Portfolio’s underlying assets and liabilities for its properties at the dates the Company acquired its interests in the CB Portfolio. For the period from March 18, 2013 to September 30, 2013 this included 35 properties and included 28 properties for the period from October 1, 2013 to December 31, 2013. The calculation includes the effects of purchase price adjustments determined at the date the Company acquired its interests in the CB Portfolio.

We consummated the acquisition of a 48.0% interest in 35 properties of the CB Portfolio. As a result of lender consents that were required to be obtained from various lenders to the CB Portfolio prior to our ownership, we completed our acquisition of the 48.0% interest in stages, which resulted in a variation in our ownership percentage from 25.3% to 48.0% in all 35 of the CB Portfolio properties from March 18, 2013 to September 30, 2013. Effective October 1, 2013, the Company and the CB Portfolio sellers amended the purchase and sale agreement, subject to receipt of all required third party consents, to increase the Company’s ownership interest by 19.0% in 28 of the 35 properties (thereby increasing its ownership in the 28 properties to 67%) in exchange for the Company’s 48.0% interest in seven of the properties (thereby reducing our ownership in the seven properties to 0%) and deferring the Company’s acquisition of any interests in two of the properties, plus a $20.2 million cash payment. Accordingly, the Company recognized its proportionate share of earnings of the CB Portfolio for the specific percentage of ownership interest we held during the applicable period.

(2)

As part of the purchase and sale agreement, the Company was entitled to receive a $13.0 million preferred payment over a one year period beginning March 18, 2013 and ending on March 17, 2014. As such, for the period from March 18, 2013 to December 31, 2013 the Company recorded in income its proportionate share of this payment, which corresponds to the portion of the CB Portfolio held by the other owners of Copper Beech.

(3)

Included in the calculation of equity in losses in the CB Portfolio is the amortization of the net difference in the Company’s carrying value of investment as compared to the underlying equity in net assets of the investee.

HSRE and DCV Holdings [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investment Summarized Financial Information Combined Financial Information [Table Text Block]

The following is a summary of the combined operating results for our unconsolidated entities with HSRE and other non-Copper Beech joint venture entities in their entirety, not only our interest in the entities, for the periods presented (in thousands):

	Year Ended December 31,
	2013		2012		2011

Revenues	$	23,422	$	17,934	$	18,089
Expenses:
Operating expenses		17,434		9,665		9,585
Interest expense		5,025		4,962		6,671
Depreciation and amortization		6,304		4,807		5,056
Total expenses		28,763		19,434		21,312
Net loss	$	(5,341)	$	(1,500)	$	(3,223)

Copper Beech [Member]

Schedule of Equity Method Investments [Line Items]

Equity Method Investment Summarized Financial Information Combined Financial Information [Table Text Block]

The following is a summary of the financial position reflecting the cost basis of our investment in Copper Beech in its entirety for the 30 properties in the CB Portfolio as of December 31, 2013 (in thousands):

	December 31,
	2013
Assets
Student housing properties, net	$	748,280
Intangible assets		37,100
Other assets		5,201
Total assets	$	790,581

Liabilities and Equity
Mortgage and construction loans	$	421,239
Other liabilities		13,112
Owners' equity		356,230
Total liabilities and owners' equity	$	790,581

Company's share of owners' equity	$	244,964
Net difference in carrying value of investment versus net book
value of underlying net assets⁽¹⁾		16,628
Carrying value of investment in Copper Beech	$	261,592

(1)

Equity Method Investment Summarized Financial Information Statement Of Operation [Table Text Block]

The following is a summary of the operating results for our unconsolidated entity, Copper Beech, in its entirety, not only our interest in the entity. The summary includes the results for 37 properties from March 18, 2013 through September 30, 2013, and the results for 30 properties from October 1, 2013 through December 31, 2013. These results reflect the impact of the Company’s cost basis of our investment, which include adjustments related to purchase accounting.

	Period from March 18, 2013
	to December 31, 2013

Revenues	$	67,545
Direct operating expenses		28,316
Revenues less direct operating expenses		39,229
Interest expense		11,852
Depreciation and amortization		56,106
Net loss based on the Company’s purchase price	$	(28,729)