The company that was expected to purchase a State College-based student housing firm says that is no longer the plan.
Campus Crest Communities announced in 2013 it was purchasing Copper Beech Townhome Communities, a company led by Penn State graduate and CEO Jack McWhirter. Campus Crest paid $261 million for a 48-percent share of Copper Beech and said it would buy the remaining 52-precent of Copper Beech over the next three years.
However, in August, Campus Crest CEO Ted Rollins announced his company will maintain its 48-percent ownership of the 37 Copper Beech properties.
“Though both parties worked diligently during negotiations, we were unable to produce a successful resolution prior to our option expiration,” Rollins said in a prepared statement. “Our goal throughout was to structure a comprehensive conclusion that would be received well by our investors and reflective of current market dynamics. Dr. McWhirter remains our key partner and we will continue to work closely together given our economic interest in Copper Beech.”
Campus Crest says the decision to keep a non-controlling interest in Copper Beech is not a strategic long-term investment and the company has started exploring alternatives.
In 2013, McWhirter described the deal as, “the biggest acquisition that has ever occurred, by far, in the student rental business.” Campus Crest was expected to pay more than $400 million for the deal plus payments of Copper Beech’s debts of nearly $150 million.
Copper Beech, which focuses on townhouse style student housing, has several properties in the State College area including Copper Beech I and II, Oakwood, Oak Hill, Northbrook Greens, and Parkway Plaza.
Copper Beech did not return a request for comment.
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