American Campus Communities Inc. recently formed a joint venture for the ownership of its existing eight-property Arizona State University (ASU) student housing portfolio. Harrison Street, as part of its social infrastructure platform, acquired a 45 percent interest in the joint venture, with the company owning the majority 55 percent interest.

The transaction is structured with a two-stage closing. The first stage closed on December 31, 2021 and involved the contribution of three properties to the joint venture and provided the company with proceeds of $271.7 million.

The second stage is expected to close in late 2022 or early 2023 and will involve the contribution of the remaining five properties for expected proceeds of $279.6 million, subject to customary closing conditions including no material adverse changes to these properties. The transaction satisfies the company’s previously communicated capital sourcing transactions of $200 to $400 million for calendar year 2022 and provides for additional capital proceeds moving into 2023.

The 8,187-bed ASU portfolio includes seven on-campus American Campus Equity (ACETM) developed communities subject to leasehold interests with ASU and one previously acquired off-campus property located adjacent to the ASU campus.