The University of South Florida (USF), USA, and HSRE-Capstone Tampa, LLC are close to sign the USF Student Village PPP project.
The project will be owned by HSRE-Capstone Tampa, a joint venture between Harrison Street Investor Corporate Member and Capstone Development Partners. The USF will enter into a 51-year ground sub-lease with the owner to design, construct, finance, and maintain the project on the USF campus in Tampa.
The owner will demolish the existing Andros complex and its adjacent support buildings to construct a village-style complex. The proposed student village project consists of a 525,000 square-foot student housing facility with 2,165 beds (1,039 replacement and 1,125 new), parking and dining facilities, a fitness center and pool, and retail space comprising approximately 53,000 square feet.
The total project investment is estimated at US$133.8 million. The project will be privately financed using an equity investment of approximately US$40.0 million and a loan of US$93.8 million. The equity is repaid over 35 years with the preferred return on equity of 7.0% being paid in years one through 10, and cash distributions for the return of equity plus the 7.0% preferred return beginning in year 11 and continuing through year 35.
Demolition and construction will commence in May 2016 with completion scheduled for fall 2017.
In November 2013, USF engaged B&D to study the possibility of an on-campus mixed use project and the redevelopment of USF's existing housing system. According to the study, B&D projects student demand for on-campus housing in Fall 2017, when the Project is scheduled to open, will be 5,977 beds, which will result in a deficit of more than 1,200 beds.