MegaProject 793: Financial close for Louisiana University P3
- Rise Real Estate
- Kutak Rock
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Louisiana State University’s (LSU) Nicholson Gateway Project in Baton Rouge (U.S.) has reached financial close.
In February 2016, the LSU Property Foundation chose Rise Real Estate to develop the mixed-use student housing complex. The public-private partnership is between LSU, the LSU Property Foundation, Provident Resources Group, and RISE Tigers, a subsidiary of Valdosta, Ga.- based RISE Development Inc.
On late September, the Louisiana Public Facilities Authority issued US$235 million of revenue bonds to finance the first phase of the US$575 million P3 project. Kutak Rock served as bond counsel and Adams and Reese LLP acted as legal advisor.
The Nicholson Gateway Development Project, which will be entirely privately funded, will be developed on a design, build, finance, operate, and maintain (DBFOM) basis. The project will also transform the largest underdeveloped tract of university-owned property that is adjacent to the campus core.
The project includes plans to construct seven new student apartment buildings, 1,547 new on-campus student beds, a 10,000-square-foot satellite recreational facility, 40,000 square feet of new retail space and 1,464 new parking spaces, including 800 spaces in a structured parking garage, as well as an additional 420-bed student housing facility at another location on campus.
Construction is currently anticipated to start by late 2016, with occupancy to occur in fall 2018.