The University of Hawaiʻi has entered into a pre-closing agreement and pre-construction right of entry with Greystar Real Estate Partners 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 the former NOAA site (approximately 2.2 acres) on Dole Street next to Burns Hall, across the street from Frear Hall. The pre-closing agreement was approved by the Board of Regents in March.
“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.”
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.
“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.”
Greystar will design-build, finance, operate and maintain the family-oriented mixed-use rental housing project. The company is considered a global leader in the investment, development and management of high-quality rental housing properties and collegiate facilities.
“We are thrilled and grateful for the opportunity to partner with a company of Greystar’s caliber,” said UH Vice President for Administration Jan Gouveia. “They are national leaders in the university housing industry and we look forward to bringing their expertise to our campus.”
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.