Campus Apartments Acquires 14-Property Student Housing Portfolio from FirstWorthing for $256 Million.

PHILADELPHIA -- Campus Apartments, Inc. (www.campusapts.com) announces its acquisition of a 14-property student housing portfolio from Dallas-based FirstWorthing Residential Company, L.P. for a purchase price of $256 million. This represents the largest private student housing transaction on record, and with the addition of 6,517 beds, positions Campus Apartments as one of the largest privately held student housing companies in the nation.

With this acquisition, Campus Apartments expands its footprint coast-to-coast and across 11 states from Pennsylvania to California. The company now owns and manages more than 12,000 beds and will add more than 150 employees to accommodate the new properties. "This portfolio allows us to extend the Campus Apartments brand to new university markets nationwide," states David Adelman, president and chief executive officer. "It was a targeted acquisition, in line with the investment strategy that we plan to carry out over the next few years."

The acquisition was funded through Campus Apartments' $1.1 billion joint venture with GIC Real Estate Pte Ltd., the real estate investment arm of the Government of Singapore Investment Corp., with Deutsche Bank Securities, Inc. acting as financial advisor to Campus Apartments. Deutsche Bank Berkshire Mortgage provided $153 million in financing with Freddie Mac, as well as $30.5 million via Deutsche Bank's proprietary bridge lending program. This was Freddie Mac's largest student housing transaction to date.

"We are very pleased to be able to provide the financing package to enable Campus Apartments to acquire this quality portfolio," said Mitchell W. Kiffe, Freddie Mac vice president of Multifamily Production and Sales. "Freddie Mac views the student housing segment of the market to be an attractive expansion opportunity."

The deal was brokered by CB Richard Ellis, and legal counsel was provided by Philadelphia-based Klehr, Harrison, Harvey, Branzburg & Ellers, LLP.

The newly acquired portfolio spans six states and encompasses 12 existing communities in Tuscon, Arizona; Riverside, California; Ft. Collins, Colorado; Orlando, Florida; Baton Rouge and Lafayette, Louisiana; and Raleigh, North Carolina; and two development parcels in Baton Rouge. Campus Apartments plans to build a mixed-use project and additional housing on these sites.

"This collection of properties was the result of an extensive research and due diligence process, where we assessed occupancy rates, enrollment numbers, and other demographic criteria for each area," Adelman states. "The diversity of locations and the combination of class-A assets, repositioning opportunities, and new development was also integral in our decision. We believe that our company can add value to these properties and provide much-needed, high-quality living arrangements for the growing student communities in these regions."

About Campus Apartments

Campus Apartments, Inc., the oldest student housing company in the nation, is a leader in the development and management of university affiliated housing. The company has recently realized tremendous growth in its holdings and geographic footprint and currently owns and/or manages more than 234 properties in 11 states.

For nearly 50 years, Campus Apartments has been a pioneer in developing communities and providing turnkey solutions for colleges and universities. University partnerships have produced projects that range from undergraduate, graduate and faculty housing, to for-sale condominiums and mixed-use developments. University deal structures have included joint ventures, privately financed projects via long-term ground leases, fee development, and 3rd party management of University-owned housing. For more information on Campus Apartments, please visit: www.campusapts.com.