Property and Equipment, Net

6 Months Ended

Dec. 31, 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):

	December 31,		June 30,		December 31,
	2022		2022		2021
Land	$	44,476	$	44,478	$	44,478
Building		333,024		342,236		337,721
Equipment		232,114		268,352		268,783
Construction in progress		11,885		11,188		12,337
Property and equipment, gross		621,499		666,254		663,319
Accumulated depreciation		(345,882)		(376,328)		(361,653)
Property and equipment, net	$	275,617	$	289,926	$	301,666

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.