BOSTON: Rising Capital Costs Bring More Partnerships
As certain as your annual resolution to work out evaporates by next week, the cost of capital for student housing will rise, says EdR's Jeffrey Resetco (left, with ADDInc's BK Boley at the recent Bisnow Boston Student Housing Summit). Jeffrey says some colleges use a third-party owner to be free of huge debts but still see a related revenue stream, including student fees. EdR is working with the University of Kentucky in Lexington to help provide approximately 8,000 student beds (and has delivered nearly 4,000 so far). And BK says there's an enormous need and opportunity to develop housing for grad students. But for privately developed dorms, it's tough to make the numbers work unless the college owns the land.