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David Adelman, a student housing developer who is spearheading the development of the Philadelphia 76ers’ new stadium, bought a minority stake in the pro basketball team, as well as in the National Hockey League’s New Jersey Devils, ESPN reports.
The level and value of Adelman's new ownership in the teams hasn't been disclosed, but Forbes reports he bought the majority of the 10% stake sold by Fanatics CEO Michael Rubin. Forbes valued that 10% stake at about $250M.
Adelman is CEO of Campus Apartments and the chairman of 76 Devcorp, which is developing a new $1.3B arena for the 76ers in Center City Philadelphia on a portion of Fashion District Philadelphia.
The stadium isn't expected to break ground for at least another four years, and 76 Devcorp is still working to secure entitlements and city approvals. Though the development, dubbed 76 Place, isn't seeking public funding, the arena will likely need some form of city-level legislation to proceed, Philadelphia Department of Licenses and Inspections spokesperson Karen Guss told Bisnow in August.
76 Devcorp will also need to work with community groups to get buy-in. The site borders Chinatown, and some residents are mobilizing against the proposal.
“We are committed to partnering with the surrounding neighborhoods so that they can reap the benefits of the arena development,” Adelman previously told Bisnow.
Campus Apartments has properties at more than 50 colleges and universities nationwide, representing about $1.5B in assets under management. Adelman is also co-founder of FS Investments, which has $35B in assets under management, and founder of Darco Capital, which invests in technology and consumer companies.
Rubin called the sale of his stake to Adelman “a perfect fit.”
“It’s going to be a great investment, and most importantly, he’s going to add value to this,” Rubin told Forbes Thursday. “Look, here’s the reality. I had dozens of people who called me who wanted to buy my stake in the Sixers when this became public. I didn’t consider doing it with anybody other than David because I thought it was the right thing for Josh Harris and David Blitzer and great for Philadelphia.”
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