San Francisco’s Academy of Art University is making waves in the city’s ever-dramatic real estate scene, and not in the way you might expect.

Once known as the corporate colonizer of downtown SF, this for-profit art school is now shedding a chunk of its massive property portfolio faster than art students drop traditional painting classes.

From Campus Empire to Digital Classroom

Remember those ubiquitous TV ads that haunted your childhood? The Academy of Art has been a San Francisco institution that’s done more than just teach art – they’ve been collecting buildings like some people collect vintage cameras. With over 40 properties in their portfolio, they’ve been a major player in the city’s real estate game.

A Costly Campus Transformation

But times are changing. With students increasingly preferring hybrid and remote learning, the school is now looking to offload about 10 buildings – including the historic First Congregational Church and St. Brigid Church – for a cool $130 million. Talk about a fire sale!

Academic Challenges Beyond Real Estate

It’s not just their real estate strategy that’s under scrutiny. The school’s facing potential accreditation issues, with a measly 8% four-year graduation rate and a “Notice of Concern” from their accrediting agency. Yikes.

While they’re selling off about a quarter of their properties, Academy of Art remains one of San Francisco’s biggest landlords. Stay tuned, because this real estate drama is far from over.