Capstone and Provident Close Financing for the First On-Campus Student Housing Community at the University of Massachusetts Boston
$139 Million Residential and Dining Commons Development Expected to Open Fall 2018
BIRMINGHAM, AL – Student Housing Developer Capstone Development Partners (Capstone), and Provident Commonwealth Education Resources, Inc. (PCER), today announced the successful closing of the financing for a new student housing and dining community for the University of Massachusetts Building Authority (UMBA), to be constructed on the campus of the University of Massachusetts Boston (UMass Boston). Structured as a public-private partnership (P3), the project is being financed with tax-exempt project revenue bonds issued by the Massachusetts Development Authority and underwritten by a team led by Citigroup. Provident Commonwealth Education Resources will own the housing and dining improvements subject to a ground lease from the institution. The housing will be managed by UMass Boston and Capstone On-Campus Management (COCM).
“Throughout our 26 year corporate history, Capstone has been a pioneer and leader in student housing development through P3’s, partnering with nearly 70 colleges and universities across the nation, including several, like UMass Boston, which were undertaking their first on-campus student housing development. We are pleased to partner with PCER, UMBA and UMass Boston, and our design-build team of Elkus Manfredi Architects and Shawmut Design and Construction, to develop this much needed and highly anticipated housing community, utilizing the faster, more cost-efficient developer-led P3 method of delivery,” said Jeff Jones, Capstone Principal and Project Executive.
According to Lisa Johnson, Vice Chancellor for Enrollment Management at UMass Boston, “It is exciting for UMass Boston to be on the precipice of developing this landmark housing and dining project on the UMass Boston campus. The university is growing and its reputation as a premier urban research institution, regionally and nationally, is attracting more students, including those who want and need to live on campus. Living on campus is statistically shown to improve academic performance, and we believe this housing will help us also increase student retention and enrich the quality of student life and development.”
Patricia Filippone, Executive Director of UMBA said, “UMBA is pleased to participate in this innovative P3 to deliver student housing to UMass Boston, which is central to the success of the campus’ strategic and master plans.”
“Provident, through our Massachusetts-based 501(c)(3), Provident Commonwealth Education Resources, Inc. is pleased and honored to be working with UMBA, UMass Boston, and Capstone to make this groundbreaking project possible. We have been fortunate to assist many colleges and universities across the country in the financing, development and operation of important new housing and other capital facilities. We look forward to continuing to serve UMBA and the UMass System in fulfilling critical institutional needs and goals,” said Steve Hicks, Chairman and CEO, Provident Resources Group.
With a total development cost of $139 million, the new UMass Boston housing community will include 1,077 student beds targeted primarily to first year students, and an approximately 23,000 square foot dining facility. The community will consist of two buildings, ranging from seven to twelve stories, totaling approximately 250,000 square feet. The community will also include living-learning amenities such as seminar rooms, study lounges and other social and academic amenities to support student success and enhance the quality of campus life.
With the planning, design and permitting stage complete, thanks to an effective collaboration effort by and between the UMass Boston, UMBA, PCER, COCM and Capstone teams, construction of the project is scheduled to commence in the coming weeks, and be ready for student occupancy by the Fall semester of 2018.
About Capstone Development Partners
Capstone Development Partners, LLC is a Birmingham, Alabama based student-housing developer whose principals have for 26 years been leaders in the higher education student housing industry, specializing in the development of on-campus and campus-edge student housing through Public Private Partnerships. Since the Capstone Companies’ first on-campus student housing project opened in 1997, Capstone has partnered with over 60 public and private colleges and universities, delivering over 52,000 beds nationwide. For more information please visit www.capdevpartners.com.