ATLANTA—In what's being called an unprecedented public-private partnership (P3), Corvias Group is about to develop, construct, manage and maintain the first phase of a student housing project for the University Systems of Georgia (USG). Corvias Campus Living will soon get underway on the $517M project. Phase one of the 65-year P3 includes 3,683 new student housing beds and 6,195 existing student housing beds totaling over 3 million square feet across nine of the systems 31 campuses.
“Quality, safe, affordable housing for students is our priority,” says USG chancellor Hank Huckaby. “We expect our initiative will generate innovation, operating efficiencies and best practices in student housing to improve the quality of the on-campus housing experience for our students.”
What makes this P3 so unique is that it's the first time a state university system has initiated the privatization of student housing through a portfolio of campuses. Corvias is working with USG to create solutions that are not practical through traditional real estate or P3 structures.
“The partnership focuses on doing the right thing—providing affordable on-campus housing for USG students while also setting the stage for positive change in student housing,” says Kurt Ehlers, managing director of Corvias. The P3 model offers long-term financial, operational, construction and design components.
For example, the model includes performance-based fees that tie compensation to metrics. There's also a reinvestment account that is projected to exceed $2 billion over the life of the P3 that works to make sure all student housing facilities are left in like-new condition at the end of the 65-year program. The model also makes room for $5.6 million of up-front funding designated for capital repairs and renovations to take place in the first year on existing housing to improve residence halls.
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