PNC Gets High Marks from Major Student Housing Developer
New on-campus housing communities at the University of Portland and Northern Arizona University are the latest developments in the successful relationship PNC has maintained with American Campus Communities (ACC) since 2001.
American Campus Communities ("ACC") is one of the nation's largest developers, owners and managers of high-quality student housing communities. ACC is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. Since 1996, the company has developed more than $2.7billion in properties and acquired in excess of $2.4 billion in student housing assets.
PNC recently financed a combined total of $103.5 million for new student housing developments in Portland, OR and Flagstaff, AZ as part of ACC's American Campus Equity (ACE) Program. Through the ACE Program, ACC makes equity investments in and owns on-campus student housing properties via long-term ground/facility leases with the universities.
The pioneering initiative provides solutions to twin challenges faced by many universities: growing enrollment -- and shrinking funds.
PNC has extensive experience with the financing of student housing properties and the unique challenges presented by their development and management. Working with ACC for more than ten years, PNC has provided financing for both traditional off-campus student housing developments and on-campus developments through the company's ACE program. PNC's experience and long-term relationship gives ACC the comfort of dealing with a trusted partner and the assurance of an easy execution.
Northern Arizona University President John Haeger summed up the benefits of the ACE program during a public forum at the High Country Conference Center.
"The University is reinventing itself as a semi-public institution amid record enrollment increases and diminishing state support," he noted. "One way the University is dealing with it is a partnership with ACC that includes a $65 million investment enabling the company to build and maintain two on-campus residence halls for more than 1000 students." (flagstaffbusinessnews.com, May 9, 2011)