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American Campus Communities

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American Campus Communities, Inc. (ACC) is the largest developer, owner and manager of student housing communities in the United States.[2] It is headquartered in Bee Cave, Texas, with an Austin postal address.[3]

American Campus Communities, Inc.
Company typeSubsidiary
NYSE: ACC
IndustryDormitory
Founded1993; 31 years ago (1993)
HeadquartersBee Cave, Texas, U.S.
Key people
Jennifer Beese (President)
William C. Bayless, Jr. (CEO)
Daniel Perry (CFO)
RevenueIncrease US$942 million (2021)
Decrease US$35 million (2021)
Total assetsIncrease US$7.574 billion (2021)
Total equityIncrease US$3.269 billion (2021)
Number of employees
3,006 (2021)
ParentBlackstone Inc.
Websiteamericancampus.com
Footnotes / references
[1]

Co-founded in 1993 by CEO Bill Bayless, the company works with universities to develop, manage and finance on-campus and near-campus communities. As of March 31, 2021, the company owned 166 student housing properties with approximately 111,900 beds, including its owned and third-party managed properties. ACC's total managed portfolio consists of 207 properties with approximately 142,400 beds. [1]

History

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From 1993 to 2003, the company partnered with SUNY system, the University of California System, and the Texas A&M University System to develop and manage student housing.

In 1996, Prairie View A&M University became the company's first university partner with the development of on campus, University Village. ACC developed housing for more than 2,000 students over the next two years.[4]

In 1997, Bayless bought out his partners and in 1999, ACC developed its first off-campus residence, the Callaway House College Station at Texas A&M University for first‑year students.[5]

In 2004, ACC became a public company via an initial public offering on the New York Stock Exchange, becoming the first publicly traded student housing company in the United States.[6]

In 2005, the company worked with Arizona State University (ASU) on the Vista del Sol community, to pioneer the American Campus Equity program, an ownership model for on-campus student housing. With ACE, ACC brings equity to a project and serves as the university's financial, development and operating partner.[7] In 2008, the company acquired the student housing division of GMH Communities Trust in a $1.4 billion transaction, doubling the size of the company.[8]

In 2011, the company received $132 million contract to build a 1,008-bed student housing complex at Northern Illinois University.[9] In 2013, ACC entered the Ivy League with Princeton's Merwick Stanworth faculty and staff housing community was its first project at an Ivy League university.[10] It later expanded its partnership to develop and manage Princeton graduate student housing.[11]

ASU's Manzanita Hall, became ACC's first redevelopment, reconfiguring the dilapidated 1960s high rise into a modern layout that promotes academic performance, collaboration and community.[12] In 2016, ACC broke ground on its 100th development, U Club Sunnyside at WVU, CEO Bill Bayless’ alma mater.[13] In 2017, ASU opened the Tooker House, the largest engineering residential college. This marked the sixth phase of the ASU partnership and 33rd LEED certified building.[14]

In 2018, ACC began construction on an approximately $615 million residential community for participants of the Disney College program, now known as Disney Internships & Programs, through an American Campus Equity translation.[15] In 2019, American Campus Communities joined Northeastern University and the city of Boston to open the 20-story residential tower, LightView,[16] as part of the “Housing A Changing City: Boston 2030” initiative to improve the quality and quantity of housing for students attending Boston institutions of higher education.[17]

In 2020, ACC collaborated with RB, the makers of Lysol, to set a formalized approach to cleanliness and disinfection at its student housing communities in response to the COVID-19 pandemic.[18]

On April 19, 2022, ACC announced that it was acquired by The Blackstone Group for $12.8 billion and would be going private (shareholders will be paid $65.47 cash per share). The acquisition was completed in August 2022.[19]

Major milestones

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  • First publicly traded campus dorm REIT [20]
  • Pioneered on-campus equity transaction structure (ACE) [21]
  • Achieved Investment Grade Rating from Moody's and Standard & Poor's [22]
  • CEO Bill Bayless was the Regional Winner of the Ernst and Young Entrepreneur of the Year award, and was subsequently named as a National Finalist (2007) [23]
  • National Association of Home Builders (2013) Development Firm of the Year [24]
  • Forbes “America's 100 Most Trustworthy” companies list (2012 & 2013) [25]
  • In 2015, CEO Bill Bayless was featured by Commercial Property Executive as one of commercial real estate's Most Innovative Executives [26]
  • Texas Monthly magazine named American Campus Communities one of the “Best Companies to Work For” on three separate occasions [27]
  • Student Housing Business 5 INNOVATOR Awards (2016) [28]
  • Student Housing Business 8 INNOVATOR Awards (2015) [29]
  • Texan by Nature 20 (TxN20) Honoree, an official ranking of the Top 20 Texas-based companies leading conservation and sustainability in 2019 and 2020 [30][31]
  • National Association of Home Builders Pillars of the Industry Award: Best in Green Market Rate Multifamily Community for Plaza Verde at University of California, Irvine in 2019 [32]
  • Great Place to Work Certification based on employees’ feedback on the Trust Index™ Survey administered by Great Place to Work for 2020 [33]
  • Globe St. CRE Best Bosses Awarded to CEO Bill Bayless in 2020 [34]

Partnerships

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American Campus Communities and the mental health non profit, Hi, How Are You Project, aim to tackle issues of mental health among U.S. college students through a residence life training and awareness program at more than 70 universities across the country.[35]

Criticism

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American Campus Communities' operation has seen criticism from tenants. In recent years, a series of incidents and complaints have emerged concerning American Campus Communities properties in the U-District. Tenants reported instances of unauthorized entries into their units, breaching rental laws, and disputed rules, such as pet bans and relocation notices. While American Campus Communities denied intentional demographic changes, tenants expressed concerns over the company's management practices, leading to the formation of a tenant association and intervention by the University of Washington. Despite efforts to address grievances and amend lease provisions, ongoing tensions persist between residents and ACC, underscoring challenges in maintaining a living environment.[36]

In December 2014, an incident occurred when University of Missouri student Jack Lipp fell from a balcony during a party due to a defective railing, resulting in his passing. The property, owned by Ginger C, LLC, was slated for demolition by American Campus Communities to make room for a student housing complex. Subsequently, John and Stephanie Lipp, Jack's parents, filed a wrongful death lawsuit against multiple entities. After reaching a settlement, the Lipps secured a $5 million settlement with American Campus Communities, Ginger C, and Roland Management, approved by Judge Nanette K. Laughrey in April 2017.[37][38]

In a settlement reached in 2018, U.S. District Judge John Ross resolved a federal class action lawsuit alleging deceptive marketing practices from American Campus Communities. Filed by Brian Fellows and other students, the suit alleged that ACC falsely advertised monthly lease rates based on 12 full months while signing 11-and-a-half-month leases. The company agreed to pay $444,775, with $275,000 allocated to a class benefit fund, providing approximately $322.77 to each of the 852 claimants. American Campus Communities adjusted its advertising practices following the lawsuit's filing, substituting "monthly" with "installment" payments. Eligible tenants who signed leases between November 1, 2012, and November 15, 2016, were invited to participate in the class action suit.[39][40][41]

In February 2022, a civil lawsuit was filed against the West Virginia University Board of Governors and American Campus Communities, alleging negligence and wrongful death following the murder of student Eric J. Smith in February 2020. Smith was shot by two non-resident intruders, Terrell Linear and Shaundarius T. Reeder, who had gained unauthorized access to the building.[42]

In early 2023, the University Area Commission in Columbus, Ohio, rejected a proposed 8-story student apartment complex on Lane Avenue and High Street, following public opposition. The project, pitched by American Campus Communities, aimed to construct an 88-foot building with 560 beds. Commissioners expressed concerns about the proposed building's height and its impact on the neighborhood's historical two-story storefronts, leading to a vote of 11-4 against the project. American Campus Communities indicated intentions to revise the proposal based on the feedback received.[43]

American Campus Communities has faced significant and vocal criticism for exploiting rising housing prices in vulnerable college town markets, leading to accusations of price gouging. Its corporate practice of locking students into year-long leases with exorbitant fees to sublease, make it clear that ACC is only or a specific economic demographic. These agreements make it challenging for those who only need housing for part of the year or who experience changes in their academic or personal circumstances. As a result, over 68% of tenants do not renew for a second year. [44][45]

Additionally, several of these properties have been reported to suffer from mechanical defects and poor construction quality. For instance, residents of Hub Ann Arbor have reported issues such as malfunctioning elevators, inadequate heating and cooling systems, and subpar maintenance responses.[46][47] Additionally, tenants at the site claimed that ACC exaggerated the existence of some amenities, such as sauna and a broken rooftop hot tub. These problems contribute to a negative living experience, further exacerbating the financial burden on students who often pay premium prices for what they expect to be high-quality accommodations.[48]

References

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  1. ^ a b "American Campus Communities Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ^ "Largest U.S. student housing owners by property portfolio 2021". Statista. Retrieved 2022-07-18.
  3. ^ "Contact Us". American Campus Communities. Retrieved 2022-03-28. 12700 Hill Country Boulevard Suite T-200 Austin, Texas 78738 - Compare with the city limits map of Bee Cave, Texas. The address is not in the Austin city limits, but in fact is in Bee Cave.
  4. ^ "Prairie View A&M University and ACC". Archived from the original on 2016-04-29.
  5. ^ "Callaway House". Archived from the original on 2017-01-29.
  6. ^ "Inline XBRL Viewer". www.sec.gov. Retrieved 2021-07-09.
  7. ^ "ACE Program". Archived from the original on 2021-07-09.
  8. ^ "Sale of GMH Communities to American Campus complete". Philadelphia Business Journals. Archived from the original on 2017-08-15.
  9. ^ "American Campus Communities building $132M housing project". Austin Business Journal.
  10. ^ "American Campus Communities Begins Construction on Owned Faculty and Staff Housing Project for Princeton". Yahoo News.
  11. ^ "Princeton U. Housing Project Is Under Way". Globe St.
  12. ^ "Manzanita Hall 2.0: Rebirth of an icon". ASU News. 2013.
  13. ^ "American Campus Communities Breaks Ground on Student Housing Project at West Virginia University". Multifamily Biz. 2015.
  14. ^ "ASU's Tooker House earns awards at Student Housing Conference". AZ Big Media. 2018.
  15. ^ "Disney Breaks Ground on $630M Student Housing Project". Multi-Housing News.
  16. ^ "Northeastern University, The City of Boston and American Campus Communities Come Together to Open LightView Student Living". Bloomberg. 2019.
  17. ^ "Northeastern University, The City of Boston and American Campus Communities Come Together to Open LightView Student Living Community". Business Wire. 2019.
  18. ^ "American Campus Communities Collaborates with RB, the Makers of Lysol, to Create Comprehensive Disinfection and Hygiene Education Protocol for Student Housing". Nasdaq. 2020.
  19. ^ "Blackstone Completes $12.8 Billion Acquisition of American Campus Communities". Student Housing Business.com. Retrieved 2022-12-08.
  20. ^ "American Campus Communities, Inc". www.reit.com. Retrieved 2021-07-09.
  21. ^ "Student Housing & Student Apartments - News & Media - American Campus Communities". www.americancampus.com. Retrieved 2021-07-09.
  22. ^ "Credit Ratings - American Campus Communities". www.snl.com. Retrieved 2021-07-09.
  23. ^ "Student Housing & Student Apartments - Executive Team - American Campus Communities". www.americancampus.com. Retrieved 2021-07-09.
  24. ^ "American Campus receives 2013 Development Firm of the Year and other accolades by NAHB". www.businesswire.com. 2013-12-18. Retrieved 2021-07-09.
  25. ^ "Austin firm named to Forbes' 'most trustworthy' list". www.bizjournals.com. Archived from the original on 2013-03-23. Retrieved 2021-07-09.
  26. ^ "Most Innovative CRE Executives". Commercial Property Executive. 2015-05-20. Retrieved 2021-07-09.
  27. ^ "Texas Partners Honor 60 Best Companies to Work for in Texas at Awards Luncheon". Flippen Group. 2015-02-01. Retrieved 2021-07-09.
  28. ^ "American Campus Communities Wins Five Innovator Awards from Student Housing Business Magazine". www.businesswire.com. 2017-04-11. Retrieved 2021-07-09.
  29. ^ "The 2015 Student Housing Business Innovator Award Winners". Student Housing Business. 2015-04-15. Retrieved 2021-07-09.
  30. ^ "American Campus Communities Named in the Inaugural Texan by Nature 20". Bloomberg. 21 November 2019. Archived from the original on 2021-07-09. Retrieved 2021-07-09.
  31. ^ "Texan by Nature Recognizes American Campus Communities as Conservation and Sustainability Leader". finance.yahoo.com. Retrieved 2021-07-09.
  32. ^ "Multifamily Pillars of the Industry Awards: 2020 Winners". www.nahbclassic.org. Retrieved 2021-07-09.
  33. ^ "American Campus Communities Earns Great Place to Work™ Certification". au.news.yahoo.com. Retrieved 2021-07-09.
  34. ^ "Student Housing & Student Apartments - News & Media - American Campus Communities". www.americancampus.com. Retrieved 2021-07-09.
  35. ^ "'Hi, How Are You?' Project Showcases Mental Health In Austin". Austin, TX Patch. 2020-10-06. Retrieved 2021-07-09.
  36. ^ Daily, Max Wasserman The (2018-12-03). "Real estate giant accused of mistreating U-District tenants". The Daily of the University of Washington. Retrieved 2024-03-20.
  37. ^ "Settlement reached in University of Missouri student's death". AP News. 2017-04-14. Retrieved 2024-03-20.
  38. ^ "Property Owners Settle Missouri Federal Wrongful Death Action For $ 5 Million After Student Falls From Balcony Due To Defective Railing". www.lexisnexis.com. Retrieved 2024-03-20.
  39. ^ Littlejohn, Cary (2018-07-09). "Settlement approved in student housing class action". Columbia Missourian. Retrieved 2024-03-20.
  40. ^ Pacey, Danielle. "American Campus Communities Services to pay $400,000 to settle student housing lease rate suit". St. Louis Record. Retrieved 2024-03-20.
  41. ^ Daily, Columbia. "Student housing company to pay settlement". Columbia Daily Tribune. Retrieved 2024-03-20.
  42. ^ Writer, Jordan Howes, Staff (2024-09-11). "WVU sued for wrongful death by murdered student's estate". The Daily Athenaeum. Retrieved 2024-09-11.{{cite web}}: CS1 maint: multiple names: authors list (link)
  43. ^ "Proposal rejected for Ohio State student apartments in place of church, campus bar". NBC4 WCMH-TV. 2023-01-19. Retrieved 2024-03-20.
  44. ^ Price Gouging in Student Housing
  45. ^ Difficulties with Subleasing
  46. ^ Mechanical Defects in Hub Ann Arbor
  47. ^ Student Experiences in Hub Ann Arbor
  48. ^ Financial Burdens on Students
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  • Official website
    • Historical business data for American Campus Communities, Inc.:
    • SEC filings
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