MegaProject 1062: Financial close of student housing P3 announced by Wayne State University
- Corvias Group
- Gilbane Building Company
- Blue Rose Capital Advisors
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Wayne State University has announced that the financial close of a 40-year PPP with Corvias, a military and student housing specialist, to develop, finance, construct, operate and maintain the university’s student housing has been completed. Corvias will deliver 841 new beds and 368 renovated beds while also managing and maintaining all existing housing facilities, which include 2,950 beds, across the university campus. Green spaces will be enhanced and new retailers added to the residential area. Wayne State will continue to operate all student-facing services.
The initial investment of $307.5 million will be used to pay off $102 million of existing housing debt and fund the continued construction of the new Anthony Wayne Drive Apartments, demolition of the Helen L. DeRoy Apartments and renovations to Chatsworth Apartments.
Corvias secured short-term bridge financing to accelerate the construction process and ensure that it will be completed in time for the new intake of students in fall 2018. Phase 1 of the Anthony Wayne Drive Apartments is now 25 percent completed. Gilbane Building Co. is the construction contractor.
Wayne State expects to begin leasing approximately 407 new beds in fall 2018 and the remaining 434 spaces by fall 2019. The property will be made up of a six-story south wing, an eight-story north wing and 11-story central tower. Once completed, it will be the largest housing complex on WSU’s campus. Corvias will staff the facility with 28 full-time employees.
The partnership will allow the university to fulfill the demand for more on-campus housing, while maintaining affordability for students and strengthening the university’s finances. Bill Decatur, vice president for finance and business operations, CFO, and treasurer of Wayne State University, said:
“Wayne State University’s partnership with Corvias is transformational. The university achieves numerous strategic goals through our partnership — enhancement of the on-campus student experience, new and renovated student housing, long-term financial support for maintaining student housing, and at the same time improving the university’s financial position.”
Dan McConaghy, partnership advisor for Corvias said,
“We are very proud to be in this partnership with Wayne State because it is grounded in a mutual commitment to serve students in an environment that supports the university and the greater Detroit community.”
Wayne State were advised throughout the process by Blue Rose Capital Advisors.