AUSTIN, TX-American Campus Communities Inc. is taking advantageof its access to capital and is now providing mezzanineloans to private developers. The student housing REIT outlined itsnew strategy during its first quarter 2011 earnings conferencecall.

During the first quarter, ACC made a $4 million mezzanine loanto a private student housing developer for the acquisition andrehab of a condominium complex near Miami University in Oxford,Ohio.

ACC will earn a 10% interest on the loan, compounded monthly,and upon completion in 2012, the REIT can elect to acquire theasset at a pre-negotiated price or pass on the opportunity and takea return of its capital. Repayment of the mezzanine loan isguaranteed by the developer, according to William Talbot, seniorvice president of investments for ACC.

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