Property and Equipment, Net

6 Months Ended

Dec. 31, 2020

Property, Plant And Equipment [Abstract]

Property and Equipment, Net

9. Property and Equipment, Net

Property and equipment, net consisted of the following (in thousands):

	December 31,		June 30,		December 31,
	2020		2020		2019
Land	$	44,229	$	43,246	$	41,480
Building		317,064		313,068		311,185
Equipment		261,722		248,359		239,417
Construction in progress		16,636		12,449		12,936
Property and equipment, gross		639,651		617,122		605,018
Accumulated depreciation		(349,415)		(331,020)		(323,043)
Property and equipment, net	$	290,236	$	286,102	$	281,975

On July 31, 2019, Adtalem sold its Chicago, Illinois, campus facility to DePaul College Prep for $52.0 million. Adtalem received $5.2 million of cash at the time of closing and holds a mortgage, secured by the property, from DePaul College Prep for $46.8 million. The mortgage is due on July 31, 2024 as a balloon payment and bears interest at a rate of 4% per annum, payable monthly. The buyer has an option to make prepayments. Due to Adtalem’s involvement with financing the sale, the transaction did not qualify as a sale for accounting purposes. Adtalem continues to maintain the assets associated with the sale on the Consolidated Balance Sheets. We recorded a note receivable of $40.3 million and a financing payable of $45.5 million at the time of the sale, which were classified as other assets, net and other liabilities, respectively, on the Consolidated Balance Sheet. See Note 8 “Accounts Receivable and Credit Losses” for a discussion on the discounting of the note receivable. The $5.2 million received during the first quarter of fiscal year 2020 is classified as a financing activity on the Consolidated Statements of Cash Flows.

On September 27, 2019, Adtalem closed on the sale of its Columbus, Ohio, campus facility. Net proceeds from the sale of $6.4 million resulted in a gain on the sale of $4.8 million in the first six months of fiscal year 2020. This gain was recorded at Adtalem’s home office, which is classified as “Home Office and Other” in Note 19 “Segment Information.”