(Read more on the multifamily market.)

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PHILADELPHIA-Campus Apartments Inc. has acquired a 14-propertystudent housing portfolio from FirstWorthing Residential Co. LP for$256 million. It adds 6,517 beds in 2,381 units to locally basedCampus Apartments' existing portfolio of more than 12,000 beds andextends the company's footprint nationwide.

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The acquisition contains 12 existing properties in six statesalong with two development parcels. David Adelman, president andCEO of Campus Apartments, tells GlobeSt.com the majority of theexisting properties are about 10 years old. They are in Tucson;Riverside, CA; Fort Collins, CO; Orlando; Raleigh, NC; and BatonRouge and Lafayette, LA.

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The development parcels are in Baton Rouge, "across the streetfrom each other," Adelman says. His company plans to break groundfor a mixed-use community by year's end. "The trend on campuses isto develop ground-floor retail to accommodate residents," he says.Costs have not been finalized, but Adelman says plans call for theconstruction of units with an aggregate of about 500 beds. It alsoplans to invest in cosmetic upgrades to some properties in theportfolio and is adding more than 150 employees to manage theacquired facilities.

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The buy represents the largest private student housingtransaction ever, according to Adelman. It "allows us to extend theCampus Apartments' brand to new university markets nationwide. Itwas a targeted acquisition, in line with the investment strategy weplan to carry out over the next few years."

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Until now, the company's properties were all east of theMississippi. "We've been targeting the West Coast for awhile," hesays, adding, "we have more properties there in our acquisitionpipeline."

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The company's $1.1-billion JV with GIC Real Estate Pte Ltd., thereal estate investment arm of the Government of SingaporeInvestment Corp., previously reported by GlobeSt.com,funded the acquisition. Deutsche Bank Securities Inc. was thefinancial advisor and Deutsche Bank Berkshire Mortgage provided$153 million in financing with Freddie Mac along with $30.5 millionfrom Deutsche Bank's proprietary bridge lending program.

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This is Freddie Mac's largest student housing transaction todate. "Freddie Mac views the student housing segment of the marketto be an attractive expansion opportunity," says Mitchell Kiffe,Freddie Mac VP of multifamily production and sales, in astatement.

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FirstWorthing Residential Co. LP is an entity of UniversityPartners, the Atlanta-based student housing affiliate ofDallas-based FirstWorthing. Ryan Reid, national director of studenthousing in the Dallas office of CB Richard Ellis, represented theseller in this transaction. Campus Apartments spoke for itself withlegal counsel from Philadelphia-based Klehr, Harrison, Harvey,Branzburg & Ellers LLP. Calls to Reid and University Partnerswere not returned by deadline.

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