Crest fallen.

PositionCHARLOTTE REGION

With more universities pulling back from dorm construction and the strongest apartment market in decades, the initial public offering of Campus Crest Communities looked well-timed in October 2010. Five years later, Chicago-based Harrison Street Real Estate Capital is paying about $7.03 per share to buy the Charlotte-based real-estate investment trust, a 44% decline. The sale, which values the company at about $1.9 billion, comes after the board ditched its management team and brought in turnaround consultants Alvarez & Marsal in April to reduce debt and search for a buyer. Privately held Harrison Street, which manages more than $7 billion and has invested jointly with Campus Crest on some projects, stepped up for the deal expected to close in the first quarter of 2016.

As of October, Campus Crest's portfolio included 79 apartment communities, offering swimming pools, fitness centers and game rooms. Holdings include 16 joint ventures and encompass more than 15,000 units in 24 states. Former CEO Ted Rollins and former vice chairman Michael Hartnett started the...

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