Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

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

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

The development parcels are in Baton Rouge, “across the street from each other,” Adelman says. His company plans to break ground for a mixed-use community by year’s end. “The trend on campuses is to develop ground-floor retail to accommodate residents,” he says. Costs have not been finalized, but Adelman says plans call for the construction of units with an aggregate of about 500 beds. It also plans to invest in cosmetic upgrades to some properties in the portfolio and is adding more than 150 employees to manage the acquired facilities.

The buy represents the largest private student housing transaction ever, according to Adelman. It “allows us to extend the Campus Apartments’ brand to new university markets nationwide. It was a targeted acquisition, in line with the investment strategy we plan to carry out over the next few years.”

Until now, the company’s properties were all east of the Mississippi. “We’ve been targeting the West Coast for awhile,” he says, adding, “we have more properties there in our acquisition pipeline.”

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

This is Freddie Mac’s largest student housing transaction to date. “Freddie Mac views the student housing segment of the market to be an attractive expansion opportunity,” says Mitchell Kiffe, Freddie Mac VP of multifamily production and sales, in a statement.

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

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.