Campus Crest Acquires Full Ownership Interests in Two Joint Venture Properties

Campus Crest Communities, Inc. (NYSE:CCG) (the Company) today
announced it has closed on the purchase of the remaining 50.1%
interests in The Grove at Huntsville, TX and The Grove at
Statesboro, GA from Harrison Street Real Estate Capital (HSRE). The
Company closed on the $13.5 million acquisition on December 29,
2011, increasing its equity interest in both properties from 49.9%
to 100.0%. Based on an estimate of the next 12 months net operating
income, the acquisition implies a nominal cap rate of approximately
6.6%. Additionally, both properties include excess land for future
development of additional phases containing approximately 240 beds
each. Including these potential expansions, the acquisition implies
a nominal cap rate of approximately 6.8% - 7.3% based on stabilized
net operating income. Concurrently with the acquisition, the
Company closed on $28.7 million of term loans for the two
properties. The loans provided by Citibank, N.A. (Citi) have a term
of one year with an option to extend for an additional year, and
bear interest at LIBOR plus 250 basis points. The loans replace
more expensive construction debt and provide flexibility as the
Company evaluates longer-term financing alternatives. Huntsville
and Statesboro are two great additions to our wholly-owned
portfolio. The properties are within close proximity to campus at
universities that are experiencing significant enrollment growth,
said Ted Rollins, the Companys Co-Founder, Co-Chairman and Chief
Executive Officer. The ability to increase our ownership in assets
developed and successfully operated by Campus Crest since opening
represents another attractive growth alternative for our Company.
Additionally, the land for potential expansions make this
acquisition a great opportunity for us. Opened in 2010, The Grove
at Huntsville is located approximately 0.2 miles from the Sam
Houston State University campus in Huntsville, TX. For the fall of
2011, the university had an enrollment of 17,618, up almost 11%
since the fall of 2006. The property was 92.7% occupied as of
December 31, 2011 and achieved an average occupancy of 99.0% in its
first year of operation. The Grove at Statesboro, also opened in
2010, is located approximately 0.7 miles from the Georgia Southern
University campus in Statesboro, GA. For the fall of 2011, the
university had an enrollment of 20,212, up over 23% since the fall
of 2006. The property was 98.9% occupied as of December 31, 2011
and achieved an average occupancy of 97.6% in its first year of
operation. On December 29, 2011, the Company also closed on a term
loan for The Grove at Conway, a HSRE joint venture project, under
the same terms described for The Grove at Huntsville and The Grove
at Statesboro. In total, the Company closed on $77 million of
Citi-funded term loans secured by six properties during the fourth
quarter of 2011. The other three properties The Grove at Lawrence,
The Grove at Moscow and The Grove at San Angelo are also HSRE joint
venture projects and were financed in October 2011. With the
completion of these acquisitions, we have now purchased
wholly-owned interests in five properties from HSRE and are excited
about the opportunity to continue to do so as we grow our business,
said Rollins. About Campus Crest Communities, Inc. Campus Crest
Communities, Inc. (NYSE: CCG) is a leading developer, builder,
owner and manager of high-quality, purpose-built student housing
properties located close to campuses in targeted U.S. markets. The
Company is a self-managed, self-administered and
vertically-integrated real estate investment trust which operates
all of its properties under The Grove brand. Campus Crest
Communities owns interests in 33 student housing properties
containing approximately 6,324 apartment units and 17,064 beds and
boasts the youngest standardized portfolio in the industry. Since
its inception, the Company has focused on customer service,
privacy, on-site amenities and its proprietary residence life
programs to provide college students across the USA with a higher
quality of living. Additional information can be found on the
Company's website at http://www.campuscrest.com. Forward-Looking
Statements This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposed of complying with these safe harbor
provisions. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts. In some cases, you can identify
forward-looking statements by the use of forward-looking
terminology such as may, will, should, expects, intends, plans,
anticipates, believes, estimates, predicts or potential or the
negative of these words and phrases or similar words or phrases
which are predictions of or indicate future events or trends and
which do not relate solely to historical matters. Forward-looking
statements in this press release include, among others, statements
about implied cap rates, growth opportunities and long term value
creation. You should not rely on forward-looking statements since
they involve known and unknown risks, uncertainties, assumptions
and contingencies, many of which are beyond the Companys control
that may cause actual results to differ significantly from those
expressed in any forward-looking statement. All forward-looking
statements reflect the Companys good faith beliefs, assumptions and
expectations, but they are not guarantees of future performance.
Furthermore, except as otherwise required by federal securities
laws, the Company disclaims any obligation to publicly update or
revise any forward-looking statement to reflect changes in
underlying assumptions or factors, new information, data or
methods, future events or other changes. For a further discussion
of these and other factors that could cause the Companys future
results to differ materially from any forward-looking statements,
see the risk factors discussed in the Companys most recent Annual
Report on Form 10-K, as updated in the Companys Quarterly Reports
on Form 10-Q.