American Campus Equity (ACE®) Program

The Challenge

Many institutions lack the financial capacity to address their housing needs while funding new academic, research and ancillary capital projects. Meanwhile, rating agencies are determining that many of the previous “off-balance sheet” student housing transactions are not “off-credit”, with the potential for negatively impacting debt capacity.

The Solution

The American Campus Equity (ACE®) Program is the optimal solution for universities looking to develop or sell student housing while preserving their debt capacity to fund core infrastructure.

The ACE® Program

  • At no time are any college/university financial resources (cash or debt) used to finance an ACE project. Furthermore, no tax-exempt debt is issued, 501(c)3 or otherwise, to finance the project.
  • Our direct ownership of the project, financial strength as a public company and large equity position will positively impact how the rating agencies view the transaction from a credit perspective.
  • We serve as your sole partner. We bring our own equity, not that of a third party. This means that we are your financial, development and operating partner and are fully vested in the project’s long-term success. A developer with third-party or joint-venture equity may not be the final decision-maker on the transaction structuring or financial and operational matters.
  • We do not charge development/acquisition or transactional fees on ACE® projects. This aligns us with the university as our financial return is not derived from fees but earned through long term cash flows and the benefits of ownership.
  • Our ability to fund significant pre-closing expenses creates efficiencies that lead to an expedited timeline and project delivery.

ACE® Case Study

Vista del Sol; 1866 on-campus beds; Arizona State University

  • Construction commenced January 2007
  • Opened Fall 2008
  • First of three phases containing 5,000 beds

"The ACE program was a key factor in our selection of American Campus for two primary reasons: it gives us the ability to preserve our debt capacity for our core academic infrastructure; and with American Campus serving as our sole partner without charging front end fees, our interests are aligned in every aspect of the project."

—Carol Campbell
ASU Chief Financial Officer (retired)