A public-private partnership is changing the landscape of funding student housing developments. Oracle Real Estate Group extends congratulations to Corvias Campus Living, which closed on $548.3 million in private financing in May to fund Phase I of a public-private partnership with the University System of Georgia (USG). The goal of the project is to improve on-campus student housing at nine of the USG’s 30 campuses.
Oracle Real Estate Group teamed with Anderson Strickler to provide the due diligence by developing the market studies and demographic analyses for each of the nine participating campuses in this initial phase of the project.
Under the 65-year partnership, Corvias will be responsible for the development, construction, management and long-term maintenance of 3,753 new beds and 6,195 existing beds.
Geoff Eisenacher of Corvias Campus Living says “the partnership marks the first time a diverse portfolio of both geographic and demographic campuses have been acquisitioned under a single o
wnership. In addition, this collaboration marks the first time a partnership used in higher education protected long-term maintenance in a public-private development.”
During the partnership, the ground rent, contingent rent, retained services and reinvestment fund returned to the BOR will be in excess of $8 billion, according to information from Corvias. In addition, Corvias will renovate and/or replace every bed multiple times during the more than six-decade long partnership, returning all assets to the campus in new or like new condition.
Eisenacher says Corvias is looking forward to the long and rewarding relationship with the USG, and is excited to be a part of this new and innovative approach to campus housing partnerships.
“The University System of Georgia is to be commended for taking such an innovative approach to improve their student housing,” says Kurt Ehlers, managing director of Corvias Campus Living. “The customized solution that we developed will allow the USG to defease approximately $300 million in existing debt and build the new 3,753 beds without incurring additional debt.
“Our interests are aligned with the institutions and we think this is positive — not only for USG but the industry as a whole,” says Eisenacher. Corvias has hired eight Georgia-based architecture, engineering and construction firms to aid with the USG student housing program, and will seek other subcontractors for projects.
The project is underway: Corvias has already broken ground at six USG campuses for the new housing. According to Ehlers, USG students at all nine campuses will see improved housing as early as this fall semester.
Oracle Real Estate Group is proud to be part of a public-private partnership that is changing the landscape of student housing developments. We’ll keep you informed on this and related innovative trends in the world of student housing.