Student Housing Business

SEP-OCT 2018

Student Housing Business is the voice of the student housing industry.

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THE SHB INTERVIE W September/October 2018 31 and he wanted to expose me to every possible part of the busi- ness, from maintenance and con- struction to leasing and property management. By the way, prop- erty management then was tenant cards — tenant contact info and rent roll on basically an index card. I had a courtside seat to what was a small business — a few thou- sand apartments — around Penn. I learned how to renovate and do adaptive re-use of buildings into apartments. SHB: Your involvement has led to the business becoming larger, of course. How did that take place? Adelman: I went to Ohio State. I graduated on a Thursday and showed up for work at Campus Apartments on Monday. I started as a property manager here; I'd been doing all sorts of jobs each summer, continuing to learn the business. What got us going in a larger scale was that I had become friends with John Fry, who was then the executive vice president of Penn. He is now the president of Drexel University. At the time, we had a lot of discussions about Penn's real estate; I convinced him to outsource property man- agement to me. In 1998, we took over the management of all their off-campus housing, about 1,000 apartments. That's how Campus Apartments started working with universities. SHB: That's led to other work with universities; you have a number of them where you've built and man- aged housing. Adelman: Yes. We did one of what was probably the earliest public- private partnerships for univer- sity housing in 1999. We did a joint venture with Penn, taking one of their older residence halls and redeveloping it. We still oper- ate that jointly with them today. That project led to other universi- ties calling us. We really started regionally in the early 2000s in Pennsylvania and Ohio, as well as North Carolina. In 2004 and 2005, when ACC and GMH were pub- lic, we had nine banks approach us to go public. One of the banks actually recommended we not go public, but bring in a capital part- ner instead. We liked that idea and did a joint venture with the gov- ernment of Singapore [GIC]valued at $300 million. That really helped us build the national platform that we have today. SHB: You have been at the cutting edge of a lot of financial struc- tures in the industry — PPPs and foreign capital — that have now become more commonplace. Adelman: When Penn outsourced their residence hall management to us, we hadn't heard of anyone else doing that. I give credit to the fact that Penn had a really smart board of trustees, many of whom had real estate and real estate capital experience. They had the notion of using other people's capital to improve the university. We were really able to craft an innovative deal. We've also done AQUISITIONS DEVELOPMENT INVESTMENT Aggressively pursuing student housing developments and acquisitions in primary, secondary, and tertiary markets, up to 5 miles from campus. Acquisitions: Phillip A. Duke (310 435-1269 Development: Michael Augustine (435) 214-7431 DEVELOPED BY MANAGED BY

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