University of California, Riverside and JLL deliver new affordable student housing
Proposed mixed-use development offers functional, efficient facilities and long-term student affordability for more than 6,000 students
RIVERSIDE, Calif., July 31, 2019 – The University of California, Riverside (UCR) has partnered with JLL to advise on new affordable student housing communities. As part of the University of California’s system-wide housing initiative, UCR is undertaking a significant expansion of its on-campus student housing, replacing an obsolete 75-year-old family housing development and enhancing the use of a current surface parking lot.
The proposed master plan concept includes a community of up to 6,000 student housing beds, dining facilities, recreation and flexible mixed-use spaces, which will be undertaken in multiple phases and projects.
More than a third (36%) of college students lack stable housing, while 9% report being homeless, according to a survey published by researchers at Temple University and the Wisconsin HOPE Lab. California has one of the highest costs of living in the country, leaving its college students particularly vulnerable.
According to Thomas Toepfer, Interim Director, Real Estate Services and Capital Programs, UCR, the university’s goal is to show national leadership on this issue by providing students with long-term access to stable housing through this new affordable student housing development.
“It is incredibly important to us that we keep tuition and housing costs down to ensure higher education, and student housing on our campus, remain financially accessible,” said Toepfer. “JLL has played a critical role advising our university to ensure we are able to keep this project affordable for the university in the long term, without increasing financial pressure on students and their families.”
JLL performed initial project feasibility testing and worked closely with a diverse UCR stakeholder group to develop design, construction, operations and maintenance performance specifications for the project.
Additionally, JLL developed, packaged and managed a two-stage request for proposal (RFP) solicitation on behalf of UCR for a private development partner. As part of the RFP process, JLL facilitated multiple design charrettes and a financial diligence session with UCR and interested developer parties. JLL also performed financial analysis and peer reviewed multiple development scenario financial models, based on both tax-exempt and private equity structures, to support the evaluation of proposals. In addition, JLL managed the selection process with a large team of UCR executives, staff, faculty and students.
“It is inspiring to be a part of this important development that addresses an important national, societal challenge of providing stable, affordable housing for students, and knowing that our team has contributed to UCR’s goal of keeping higher education accessible, and student housing affordable for students,” said Bob Hunt, Managing Director, West Region, of JLL's Higher Education group. “By leveraging our in-depth expertise in development advisory services in the higher education space, UCR is able to focus on their core mission of educating our next generation of leaders.”
After the selection of American Campus Communities as its developer partner, UCR retained JLL as an advisor to the transaction and in negotiations, and as an owner’s representative through entitlement, design and construction of two initial projects that will catalyze UCR’s transformative redevelopment while maintaining affordability for students.
The first project – a freshman-focused 820-bed residence hall and an 830-seat dining facility known as “Dundee-Glasgow” – completed financial close in December 2018, is currently under construction and is scheduled to open in the fall of 2020. A second, separate project, known as “North District Phase I,” includes the creation of a 1,500-bed apartment community, which completed financial close in July 2019 and is set for completion in the fall of 2021.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
The University of California, Riverside is a doctoral research university, a living laboratory for groundbreaking exploration of issues critical to Inland Southern California, the state and communities around the world. Reflecting California's diverse culture, UCR's enrollment is now nearly 23,000 students. The campus opened a medical school in 2013 and has reached the heart of the Coachella Valley by way of the UCR Palm Desert Center. The campus has an annual statewide economic impact of more than $1 billion. Learn more at https://www.ucr.edu/.