American Campus Communities Commences Construction on ACE-Funded Holloway Student Housing Apartment Community at San Francisco State University

Business Wire 4-Dec-2018 6:19 PM

American Campus Communities (NYSE:ACC), the nation's largest owner, manager and developer of high-quality student housing has commenced construction of a new on-campus student housing development in a public-private partnership with San Francisco State University (SF State).

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Representatives from SF State, American Campus Communities, and the project team celebrate the commencement of construction of the university's newest on-campus student housing. (Photo: Business Wire)

San Francisco State University is a public research university that serves nearly 30,000 students and is part of the California State University System. This student housing project marks the first equity-financed public-private partnership for the California State University System. With a waitlist of more than 2,000 students wanting to live on the SFSU campus, the partnership will allow for a state-of-the-art solution to the need for updated student housing at affordable price points in the market. The project is the result of a development collaboration with Pacific Union Development Company (PUDC) and RLR Ventures (RLR), who have been working with SF State on the Holloway Avenue revitalization project since 2014.

"This public-private partnership with American Campus Communities and Pacific Union Development Company will help us meet the demand for modern, on-campus student housing," said Jason Porth, SF State's vice president for University Enterprises. "It has also created an exciting opportunity to contribute to the revitalization of Holloway Avenue."

Upon completion in 2020, the project will be located on the southeast edge of the SF State campus, serving as a hub of student life activity and pedestrian connection between the University and its surrounding community. The 584-bed, mixed-use community will feature fully furnished apartment-style units with private and shared accommodations. Residents will have access to nearly 14,000 square feet of modern amenity space, including social and recreational lounges, and an Academic Success Center. Additionally, the community will include nearly 15,000 square feet of on-site retail. The development is designed sustainably and will pursue a LEED Gold certification.

"We're excited to kick off our partnership with the California State University System," said Jamie Wilhelm, ACC executive vice president/public-private transactions. "We look forward to delivering modern, purpose-built student housing and we're very proud of the work that PUDC and RLR have done in helping SF State meet its needs through a unique partnership model."

The new facility adds to the University's ongoing revitalization of Holloway Avenue, which is emerging as a vibrant campus gateway. In addition to the student housing community, the corridor includes the university's first new academic building in over two decades—the Liberal & Creative Arts Building. The four-story, 76,000 square foot building will house SF State's Broadcast and Electronic Communication Arts program, administrative offices, television studios, a newsroom, radio station and interdisciplinary lecture and active learning classrooms. It, too, will be open for the Fall 2020 semester.

"This project is designed to support the academic success and social interaction of SFSU students and provide vibrant retail and gathering space for the University and the surrounding community," said Joel Roos, PUDC Principal, vice president of development.

"We are enormously proud to play a role in the University's vision for unmatched student living as a key component of the Holloway Avenue neighborhood vision," said Ross Robb, RLR Ventures president.

The transaction was structured under the American Campus Equity (ACE^®) program, which gives universities the opportunity to expand and modernize their student housing offerings without the use of university financial resources. Under the ACE program, ACC delivers high-quality student housing at lower development costs and operating expenses as well as affordable rents to residents, without the use of taxpayer or university funds, which allows universities to dedicate their capital to educational and research facilities.

About American Campus Communities

American Campus Communities, Inc. is the largest owner, manager and developer of high-quality student housing communities in the United States. The company 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. As of September 30, 2018, American Campus Communities owned 168 student housing properties containing approximately 103,500 beds. Including its owned and third-party managed properties, ACC's total managed portfolio consisted of 202 properties with approximately 131,900 beds. Visit www.americancampus.com.

About Pacific Union Development Company

Pacific Union Development Company is a privately-held real estate development, investment and property management firm located in San Francisco. Founded in 1975, PUDC has distinguished itself as a leader in the development and management of large-scale commercial, residential, and mixed-use properties throughout the Bay Area. The firm's broad portfolio of projects includes multi-family, student housing, mixed-use, senior housing, affordable housing, retail, hotels, museums, schools, parking facilities, medical office buildings, subdivisions, and single-family homes. For more information on PUDC, please visit www.pudco.com.

About RLR Ventures

RLR Ventures, LLC is a Tempe, Arizona based development and advisory firm specializing in structuring public-private transactions for colleges and universities, K-12 school districts and municipalities.

About San Francisco State University

San Francisco State University is a doctoral public university serving students from the San Francisco Bay Area, across California and beyond, with nationally acclaimed programs that span a broad range of disciplines. Nearly 30,000 students enroll at the University each year, and its more than 253,000 graduates have contributed to the economic, cultural and civic fabric of San Francisco and beyond. Through them — and more than 1,700 world-class faculty members — SF State proudly embraces its legacy of academic excellence, community engagement and commitment to social justice. For more information, visit sfsu.edu.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the applicable federal securities law. These statements are based on management's current expectations and assumptions regarding markets in which American Campus Communities, Inc. (the "Company") operates, operational strategies, anticipated events and trends, the economy, and other future conditions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. For discussions of some risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements, please refer to our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2017 under the heading "Risk Factors" and under the heading "Business - Forward-looking Statements" and subsequent quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statements, including our expected 2018 operating results, whether as a result of new information, future events, or otherwise.

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