The University of Hawaiʻi has entered into a pre-development agreement for its first major public-private partnership (P3) that will provide on-campus housing for UH Mānoa graduate students and faculty members. The estimated $110 million building project will provide 388 affordable rental housing units along with a child-care facility and ground floor retail space. It will be located on a 2.2 acre site on Dole Street next to Burns Hall, across the street from Frear Hall.
“We are constantly working to find pioneering opportunities to enhance the experience for our students, faculty and staff on campus,” said Kalbert Young, UH vice president for budget and finance and chief financial officer. “The new housing project helps meet the demand for modern, on-campus housing at a reasonable cost.”
P3s are nationally recognized as a great way for government entities to enhance financing options, shift operating costs, leverage assets and capitalize on private-sector expertise.
The university is actively pursuing P3s as a way to monetize UH-owned lands to generate another revenue stream beyond tuition and state funding such as real property development, renewable energy development and facilities maintenance.
“P3s are nationally recognized as a great way for government entities to enhance financing options, shift operating costs, leverage assets and capitalize on private-sector expertise,” said Young. “The Office of Strategic Development and Partnership that was established in June 2019 will lead the coordination of real property administration for the 10 UH campuses, and P3s are a significant part of our strategy moving forward.”
For the university’s first major P3 project, an affiliate of Greystar Real Estate Partners, LLC, a global leader in the investment, development and management of high-quality rental housing properties and collegiate facilities, was selected to design, build, finance, operate and maintain a family-oriented mixed-use rental housing project.
In addition to providing affordable, on-campus housing, the project is expected to generate residual free-cash flow to UH in the form of ground lease rent. The development agreement and long-term ground lease will be negotiated between UH and Greystar, and would be subject to review and approval by the Board of Regents.