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Property and Equipment, Net
 12 Months Ended
Jun. 30, 2023
Property, Plant And Equipment [Abstract]  
Property and Equipment, Net

11. Property and Equipment, Net

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

​

​

​

​

​

​

​

​

​

​

June 30, 

​

​

2023

​

2022

Land

 

$

38,345

​

$

44,478

Building

​

​

303,737

​

​

342,236

Equipment

​

​

226,600

​

​

268,352

Construction in progress

​

​

28,668

​

​

11,188

Property and equipment, gross

​

​

597,350

​

​

666,254

Accumulated depreciation

​

 

(338,828)

​

 

(376,328)

Property and equipment, net

​

$

258,522

​

$

289,926

​

Depreciation expense was $41.6 million, $44.6 million, and $33.9 million for the years ended June 30, 2023, 2022, and 2021, respectively.

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 held a mortgage, secured by the property, from DePaul College Prep for $46.8 million. The mortgage was due on July 31, 2024 as a balloon payment and bore interest at a rate of 4% per annum, payable monthly. The buyer had 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 continued 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 10 “Accounts Receivable and Credit Losses” for a discussion on the discounting of the note receivable. On February 23, 2023, DePaul College Prep paid the mortgage in full. The $46.8 million received during fiscal year 2023 is classified as an investing activity in the Consolidated Statements of Cash Flows. Upon receiving full repayment of the mortgage, Adtalem no longer is involved in the financing of the sale and therefore derecognized the note receivable, the financing payable, and the assets associated with the campus facility, which resulted in recognizing a gain on sale of assets of $13.3 million in fiscal year 2023. This gain was recorded at Adtalem’s home office, which is classified as “Home Office and Other” in Note 22 “Segment Information.”