On January 23, 2019, the California State University board of trustees approved an 85-year ground lease with Greystar Real Estate Partners, LLC for a new $164 million student housing project at Sacramento State University (“Sac State”). It has been just two years from initial project conceptualization to the board of trustees approval, due to careful and deliberate planning by all parties involved.
“The impending loss of affiliated off-campus beds increased the need for additional housing geared towards upper division students,” said Kim Wright, a senior associate with Brailsford & Dunlavey (“B&D”), the development advisory firm that partnered with the campus throughout the effort.
“Early in the planning process, we identified the critical path items, including the CSU approvals, and created a focused schedule with flexibility that resulted in a two-year process from planning to ground lease signing.”
Stemming from its 2015 Campus Master Plan, Sac State has focused on increasing and improving its student housing offerings to bolster student success, support the CSU Graduation Initiative, and accommodate students from beyond the local market. In 2017, the University partnered with B&D to develop initial concepts and analyze financing options (Systemwide Revenue Bonds and a Public-Private Partnership (“P3”).
B&D ultimately recommended a 1,000+ bed apartment community delivered through a P3 equity structure in which Greystar will develop, build, 100% finance, operate and manage the project.
The approximately 360,000-square-foot project marks the first P3 at Sac State and includes the addition of 1,100 new apartment-style beds in a mix of studio, two-, and four-bedroom units targeted toward upper-division students. While the project includes amenities that are typical in the off-campus market, careful consideration of students’ desire for affordability also played a critical role in the project’s design.
The project is expected to break ground in May 2019 and open fall 2021.
Sacramento State is the sixth largest campus in the CSU System, and it continues to grow. Just last year, the University experienced record fall enrollment of approximately 31,000 students. This project is expected to bolster the University’s retention and recruitment efforts and further help Sac State achieve its strategic goals.
Read more about the project and next steps in Sac State’s recently issued press release here.
Pictures: courtesy of Greystar