American Campus Communities Begins Construction on $138 Million Benchmark Development at Arizona State University.

AUSTIN, Texas -- American Campus Communities, Inc. (NYSE:ACC), one of the largest owners, managers and developers of high-quality student housing properties in the U.S., today announced the commencement of construction on the South Campus Residential Community (SCRC) at Arizona State University. The $138 million, 1,866-bed SCRC project is the initial phase of a potential $360 million three-phase student housing development targeting 5,100 total beds.

This is a pioneering transaction, as American Campus will fund 100 percent of the total development costs of the project and will own a leasehold interest in the on-campus land and improvements through an 85-year ground lease, which includes two 10-year extensions. Historically, developers have typically not invested their own equity in on-campus projects, but have relied upon project-based financing with 100 percent of the project cost funded with debt.

"We are extremely pleased to be partnering with ASU, one of the nation's largest and most prestigious universities, on this significant project," said Bill Bayless, ACC president and CEO. "Our equity investment in this large scale on-campus student housing development is a benchmark transaction for our company, the University and the student housing industry. We hope that this transaction serves as a catalyst for a paradigm shift in how colleges and universities approach on-campus student housing development."

The SCRC will consist of 10 residential buildings and a 23,000-square-foot, two-story community center featuring a club-style fitness center, social lounge, game room, theater, and study rooms. Outside amenities will include a pool and sundeck, a basketball sportcourt, a parking garage and surrounding parking spaces. All units will be fully furnished and will feature predominately private bedroom and bathroom accommodations, fully equipped kitchens, washer and dryers, and high-speed internet. The project will include student-oriented retail space that may contain a restaurant, clothing retailers, and a coffee shop. The SCRC is anticipated to open for occupancy at the beginning of the Fall 2008 academic year.

"This long-term partnership with American Campus enables ASU to offer more students the opportunity to reside in high-quality modern on-campus housing, while concurrently preserving our debt capacity to invest in core academic infrastructure," said Michael Crow, ASU president. "The commencement of this project also paves the way for the Barrett Honors College development and brings ASU one step closer to realizing our continuing goal of providing exceptional living and learning experiences for our students."

ASU plans to increase housing at its main campus in Tempe, which serves more than 51,000 students, from approximately 6,800 to 12,000 by 2015.

The second phase of development, the Barrett Honors College project, is expected to receive final approvals and commence construction in 2007. Occupancy is anticipated for Fall 2009. The academically-oriented residential honors college will contain approximately 1,700 beds and will feature classrooms, administrative and faculty offices, a student center, and a 22,000-square-foot dinning facility. Barrett Honors College is being designed to meet silver certification standards on the LEED Green Building Rating System. The third phase of development is currently in the conceptual planning stage.

About American Campus Communities

American Campus Communities Inc. is one of the largest developers, owners and managers 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, leasing and management of student housing properties. American Campus Communities owns and manages a portfolio of 38 student housing communities containing approximately 23,700 beds. Including its owned properties, the company provides management and leasing services at a total of 53 properties with approximately 32,900 beds located on or near college and university campuses. Additional information is available at www.americancampuscommunities.com.