Only A Great Partnership Can Deliver A Great On-Campus Housing Revitalization
Click here for a video overview of the UK campus revitalization development
Shortly after Dr. Eli Capilouto became the president of the University of Kentucky (UK) in 2011, he and the Board of Trustees launched an ambitious plan to enhance the university on all fronts — academic, research, housing, student experience, and community service and impact. President Capilouto’s initiative to secure UK a spot in the top echelon of America’s universities and revitalize the campus became known as “The Kentucky Promise.”
To attract the best and brightest students and provide the most highly regarded education, UK leadership realized that it needed modern, state-of-the-art, living-learning facilities.
After a competitive selection process, UK selected EdR as its partner to systematically build and replace 6,000 beds of on-campus housing and enlarge the housing capacity even more.
The $500 million project is being funded 100% by EdR through its On-Campus Equity financing plan — The ONE Plan SM .
“With The ONE Plan SM , our company uses its equity and financial stability to fund projects on university land,” said Tom Trubiana, EdR’s executive vice president and chief investment officer. “This gives the university access to a single trusted partner, and helps create substantial long-term financial benefits for both partners.”
Since our selection in December 2011, EdR development, construction and management team members have worked in tandem with UK team members in financing, facilities, housing, residence life and academics. They meet weekly to ensure goals are aligned and that the results are delivered on time and on budget.
Phase I Completed On Time and On Budget
EdR recently delivered honors college housing, the first phase of UK’s on-campus housing revitalization . Phase I, whose improvements EdR owns under a ground lease, was development of the 601-bed honors housing in two buildings — Central Halls I and II. They opened August 16, 2013. Central Halls I and II comprise 171,386 square feet with 601 beds (309 units). They contain three classrooms, 14 study rooms and two multipurpose rooms as well as two laundries and two kitchens. Total development cost is $25.78 million.
Central Hall I and II alone employed 430 direct employees and 292 indirect workers, 75 % of whom were Kentucky residents. The construction represented $15.5 million in expenditures in Kentucky with nearly $400,000 in sales taxes being generated for the state.
Phase II Under Way and On Schedule
Construction also is progressing for Phase II of EdR’s efforts to revitalize housing, which is envisioned to replace the majority of on-campus housing (about 6,000 beds) and expand capacity to about 9,000 beds. Four Phase II projects are set for delivery in fall 2014 and another three for 2015.
All projects are being designed to meet Leadership in Energy and Environmental Design Silver requirements and, where feasible, geothermal heating and cooling will be implemented. The combination of 601 beds in Phase I, 2,381 beds in Phase II-A and the upcoming 1,610 beds in Phase II-B makes UK’s campus revitalization the largest and swiftest such expansion in collegiate housing history with a total of 4,592 beds.
Phase II will employ more than 2,300 people directly, create another 1,580 jobs and generate $2.24 million in Kentucky sales tax revenues.
During the next two years, 4,600 new residence hall beds will open. In all, some $500 million in private investment from EdR, in up to 9,000 new residence hall beds over the next several years will occur.
The UK campus is making a bold statement about what a residential university should look like in the 21st century. It’s happening because of the leadership of the UK Board of Trustees and an incredible faculty and staff, who are placing students first in everything they do.
It’s happening because of a collaborative partnership between UK and EdR. Together we work hard to keep our goals aligned and our shared vision on the same horizon – a horizon that holds a transformed and revitalized campus for Kentucky’s flagship institution of higher learning and one that fulfills “The Kentucky Promise.”