While the deal is not a pure student housing play, it doesillustrate the rapid maturation of this specialty niche in the realestate industry. Robin Kennedy, real estate and land use partner atManatt, Phelps & Phillips, tells GlobeSt.com that studenthousing has changed almost beyond recognition over the last five to10 years. Consolidation and its inevitable result--ever morecompetitive private sector companies--will usher in a new era ofmanagement and asset development, she says.

Yaacov Gross, head of Morrison & Foerster's real estatesecurities group, also agrees the consolidation this dealrepresents will aid the larger sector. "It will deliver greateroperating efficiencies in what is a management-intensive niche," hetells GlobeSt.com.

From ACC's perspective, the deal is a chance to expand into newmarkets and--as Gross indicates--leverage economies of scale forbetter managerial efficiencies. In a statement CEO Bill Baylesssays the acquisition will also provide it with a significantopportunity for accretion in asset value, the ability to self funda portion of its owned development pipeline via strategicdispositions, and entry into 41 new collegiate markets, "creatingopportunities for growth in each of our business segments."