| American Campus Communities, Inc. | |
| Type: | Subsidiary |
| Industry: | Dormitory |
| Location: | Bee Cave, Texas, U.S. |
| Key People: | Jennifer Beese (President) William C. Bayless, Jr. (CEO) Daniel Perry (CFO) |
| Revenue: | (2021) |
| Net Income: | US$35 million (2021) |
| Equity: | US$3.269 billion (2021) |
| Num Employees: | 3,006 (2021) |
| Parent: | Blackstone Inc. |
| Footnotes: | [1] |
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]
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]
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]
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]
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 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.[42]
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. [43] [44]
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.[45] [46] 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.[47]
Overall, while these campus communities offer convenience and proximity to educational institutions, their practices and the quality of their properties have drawn considerable criticism from students and their families.[48]