PPP07_FranklinMarshl-AdlmnKngstn

A Small School with a Big Dream Franklin & Marshall’s Campus Gateway Project Presented by: David Adelman, President - Campus Apartments, Inc Tom Kingston, Vice President of Finance and Administration - Franklin & Marshall Introduction Background | Franklin & Marshall College • Private Liberal Arts College • Located in Lancaster, Pennsylvania • Founded in 1787 • Enrollment of approximately 2,000 • Ranked as a Top 40 Liberal Arts College by U.S News & World Report Background | Campus Apartments • Oldest student housing company in the nation with nearly 50 years of experience • Headquartered in Philadelphia, Pennsylvania • Experience Includes: Mixed Use, Adaptive Reuse, Ground Up Development, and 3rd Party Management • Owns and/or manages more than 250 properties • $1 Billion Joint Venture with the Government of Singapore’s real estate investment arm • University-affiliated development projects currently underway at the University of Pennsylvania, Franklin & Marshall College, North Carolina Central University, and Emory University The Project: College Row The Project | College Row Project Overview • • • • • • • Campus Gateway Project Delivery Scheduled for Summer 2007 Long-term Ground Lease 50,000 sq ft of specialty retail 393 student beds “Minimized Debt/Credit Impact” Student beds leased up in weekend Campus Map Why Mixed Use? | A Small School with a Big Dream Multiple Strategic Initiatives • Student Recruitment/Lancaster Image • Campus needed a new and appealing “front door” • Campus Lacked Vibrancy • On Campus housing shortage detracted from Liberal Arts College experience • Surrounding Neighborhood Needed Revitalization • College wanted to create a place where the campus community, neighbors, and others from the region could meet, shop, dine, & live College Row, Franklin & Marshall College Project Timeline Project Specifics • Structure ƒ Long-term Ground Lease (60 years) • Financing ƒ Off-Balance Sheet ƒ Minimization of Impact to F & M’s Credit Rating ♦ Direct vs Indirect Debt ♦ No guarantee necessary – “College Approved” Housing • Operations ƒ Upper-Class Housing ƒ Campus Apartments Owns and Manages • Commercial Component ƒ Qualifiers / Studies Used by Retailers (School did feasibility study) ƒ Commercial Lease Up Retailers Expressing Interest | A Small School with a Big Dream Discussion Points Early Successes ƒ Quick Residential Lease Up ƒ Strong Commercial Interest ƒ Campus, City, Neighborhood Support ƒ Minimal “Moody’s Impact” Q&A