Commercial Real Estate Finance

With over $1 billion in assets under management and more than 21,000 beds in 17 states, Campus Apartments has become one of the nation’s largest developers, owners, and managers of student housing.

As President and CEO of Campus Apartments, David Adelman is a driving force in college and university real estate development throughout the United States. His business savvy and long-term vision have led the company to become one of the country’s leading providers of university housing. Through strategic acquisitions, creative development, rehabilitation projects and the consolidation of owner-operators in various locales, Adelman has increased the company’s revenue by 300 percent over the last five years.

Adelman’s strength lies in his ability to structure deals and establish formidable relationships with financial institutions, as evidenced by Campus Apartments’ recent $1.1 billion venture with GIC Real Estate Pte Ltd, the real estate investment arm of the Government of Singapore Investment Corporation.

In addition to his duties as President and CEO of Campus Apartments, Adelman is the vice chair of University City District Board of Directors, the President of the Apartment Association of Greater Philadelphia, board member of Hyperion Bank and the National Multi Family Council (NMHC), member of the Executive Committee of the Urban Land Institute’s Philadelphia Chapter, and a member of the Young President’s Organization. Additionally, Adelman is vice chairman of FS Investment Corp., a publicly registered business development corporation.

Q: As a company, tell me about the niche you have carved out for yourself and how you feel you are different from the competition. Why do you find this product type more appealing than alternative real estate asset classes?

A: Campus Apartments has carved out a very unique niche in the real estate world. Our primary focus is designing, developing, and acquiring student housing and university related real estate. This includes mixed use developments on college campuses as well as faculty and graduate housing and retail. The beauty of this niche is that even in this economic climate, more people will go back to school as the result of not being able to find jobs. Also, the federal government has made low cost student loans a priority which helps to allow our customers to afford their college tuition and ultimately pay their rent.

Q: How has your strategy changed as a result of the credit crisis?  Have you expanded/narrowed your acquisition criteria? If so, to what, and why?

A: The irony is we had pretty tough underwriting standards and acquisition criteria and only bought 1 deal in 2008 (we developed 2 others).  We never felt our money burning a hole in our pocket. That being said, we are still looking at anything that comes to market, but we want to make sure we really like it before we pull the trigger.

Q: How did you get your start in the business?

A: I got started in the business in a unique way. The founder and chairman of campus apartments (Alan Horwitz) was a family friend. I was 11 years old playing basketball with him and made a bet that I would win. Well, I wound up losing my basketball, baseball glove, and soccer ball.  I had to stack lumber each week at his office and sweep saw dust to earn something back. Then after I was 13, I took my Bar Mitzvah money, gave it to Alan, and became a limited partner in a student housing deal at Penn (which we still own).

Q: Are you implementing any green technology into your assets? Do you think it is a good strategy economically? Why/why not?

A: We are starting to look at Green technology.  We recently installed solar panels on our club house at our Emory Graduate housing project and we are even looking to incorporate a Zip Car program. What has become very apparent is that students in general are very interested in today’s environmental issues.  They are motivated to do their part and get involved.  At the end of the day, I think we can explore many ways to incorporate green technology (and hopefully reduce our utility costs).

Q: Who is the person in commercial real estate you most admire?  Why?

A: The real estate person I admire most is Sam Zell. He has always had the ability to time his entry and exits into various asset classes.

Q: If you weren’t in real estate, what would you be doing with your life?

A: If I wasn’t in real estate I think I would be a teacher/ college professor.

Q: If you won the $300M mega million jackpot tomorrow, what would you do with your life? The money?

A: If I won the lottery, I would still be doing what I do everyday.  I would however devote a significant portion of my time and money to charity and non-profit work.