Property and Equipment, Net

3 Months Ended

Sep. 30, 2022

Property, Plant And Equipment [Abstract]

Property and Equipment, Net

10. Property and Equipment, Net

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

	September 30,		June 30,		September 30,
	2022		2022		2021
Land	$	44,476	$	44,478	$	44,460
Building		333,954		342,236		339,404
Equipment		256,864		268,352		264,418
Construction in progress		10,600		11,188		11,191
Property and equipment, gross		645,894		666,254		659,473
Accumulated depreciation		(364,313)		(376,328)		(350,714)
Property and equipment, net	$	281,581	$	289,926	$	308,759

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 Sheets. See Note 9 “Accounts Receivable and Credit Losses” for a discussion on the discounting of the note receivable.