UNC WILMINGTONH O U S I N G M A S T E R P L A N U P D A T E
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UNC Wilmington
AgendaU N C W H O U S I N G M A S T E R P L A N U P D A T E
Review of Key Findings Implementation Plan
– Phasing strategy– Beds by unit-type– Capital costs– Supply / demand reconciliation
Delivery Structure Implications Next Steps
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Value of On-Campus Liv ingU N C W H O U S I N G M A S T E R P L A N U P D A T E
National studies consistently find that living on campus has significant impact on academic performance
– GPA impact = estimated ½ letter grade (Center for Applied Economics & Policy Research)
– 11% higher 4-year graduation rates (Levin & Clowes)
The UNCW residential experience is delivering high value in terms of student success and retention
– Higher retention rate for freshmen who lived on campus– Faster and higher rates of graduation for sophomores who lived
on campus– Rated in the top 6% nationally (of 295 institutions) for positively
impacting students’ academic performance (Educational Benchmarking, Inc., 2016)
– Also rated in the top 6% nationally for housing’s impact on decision to return to the university (EBI, 2016)
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Value of On-Campus Liv ingH O U S I N G A N D R E S I D E N C E L I F E
Current residence’s ability to foster engagement
Students living on campus feel more connected to UNCW and their peers than those currently living off campus
74%
60%58%
62%
93%
83%
89%
84%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Helped me adjust to life atUNCW
Provided me with a senseof community
Introduced me to newfriends
Exposed me to diversity
Off Campus On Campus
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Vis ion Al ignmentK E Y F I N D I N G S R E V I E W
Increase the supply of campus housing to support UNCW’s Strategic Plan
– Current housing deficit = 995 beds– Fall 2021 deficit = approximately 2,300 beds
Comprehensively elevate the residential experience– Remove or substantially reinvest in obsolete / vision misaligned halls – Reclaim common areas and improve outdoor spaces
Maximize impact by creating functional communities– Consider “village” concepts to deepen connections to campus and peers
Identify funding strategy that reconciles housing vision with UNCW’s financial realities
– Leverage the strength of Housing’s financial position – Understand impact of delivery structures on master plan implementation
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Campus Housing Supply/DemandK E Y F I N D I N G S R E V I E W
UNCW Supply vs. Projected Demand*
*Assumes enrollment projections described in the 2016-2021 Strategic Plan (June 2016)
4,064 4,064 4,064 4,064 4,064 4,064
5,059 5,242 5,545 5,812 6,113 6,400
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2016 2017 2018 2019 2020 2021
Existing Supply Projected Demand
UNCW’s bed deficit, relative to market demand, will reach approximately 2,300 beds by 2021.
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Housing Supply Over viewK E Y F I N D I N G S R E V I E W
Hall Year Built Revenue Beds Class Style
Cornerstone Hall 2003 255 Freshman Traditional
Honors House 1998 94 Freshman Traditional
Innovation House 1998 96 Freshman Traditional
Galloway Hall 1971 378 Freshman Traditional
Belk Hall 1976 180 Freshman Semi-Suite
Graham-Hewlett 1979 374 Freshman Semi-Suite
University Apartments 1980 388 All Apartment
University Suites 1989 393 All Pod-Style
Schwartz Hall 1985 150 Freshman Pod-Style
HRL Total 2,308
RA Beds 46
HRL Avg. Occ. 100.8%
Seahawk Crossing 2009 652 Non-Freshman Apartment
Seahawk Landing 2007 594 Non-Freshman Apartment
Seahawk Village 2006 510 Non-Freshman Apartment
Total Revenue Beds 4,064
RA Beds 81Total Beds at UNCW 4,145
0%
1%
1%
2%
3%
5%
8%
12%
34%
34%
0% 10% 20% 30% 40%
Quality housing
UNCW Athletics
I do not know
Other (please specify)
Scholarship
Proximity to home
Affordability
Size of campus
Campus environment
Quality of academics
Why did you decide to attend UNCW?(2 responses allowed)
Access to the campus experience is critically important to incoming UNCW students.
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Housing Development ContinuumK E Y F I N D I N G S
Pod/Traditional
Apartment (4-BR)
Full-Suite
Semi-Suite
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Master P lan Pr ior i t iesK E Y F I N D I N G S R E V I E W
Strategically manage existing assets
– Preserve facilities, where possible, to reduce capital costs
– Schwartz / Univ. Suites = increased programming investment
– Belk / Graham-Hewlett = moderate renovations
– Remove Galloway and University Apartments from the inventory
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Capit a l Needs - Gal lowayK E Y F I N D I N G S R E V I E W
Galloway requires substantial capital investment to improve student satisfaction.
13%
41%
45%
47%
49%
53%
55%
58%
59%
61%
Galloway Hall
Belk Hall
University Apartments
Schwartz Hall
Honors House
Graham-Hewlett Hall
Innovation House
Cornerstone Hall
University Suites
Off Campus
“Very Satisfied” with current housing situation
Freshman Resident Engagement By HallCurrent
GallowayRenovated Galloway
New Pod/Trad.
Total Beds 389 331 331
Revenue Beds 378 320 320
Year Online - 2020-2021 2020-2021
Construction Cost per SF - $195 $195
Total Cost per SF - $260 $260
GSF 64,912 64,912 82,813
Total Project Cost - $18.9 mm $23.5 mm
Rental Rate $2,599 $2,989 $3,381 Cumulative Cash Flow
through 2026-2027 - $558,789 $1,368,708
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Capit a l Needs – Univers i ty Apts .K E Y F I N D I N G S R E V I E W
Freshmen living in University Apartments report lower levels of engagement than freshmen living in other residence halls.
Freshman Resident Engagement By Hall Opportunity to double housing capacity on University Apartments site
74%
89%
72%
79%
86%
77% 79%
89%
96%
89%92% 94%
82%87%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Connectedme to
campuscommunity
Helped meadjust to life
at UNCW
Sense ofcommunity
Introducedme to new
friends
Enhancedoverall
experience
Positiveimpact onacademics
Exposed meto diversity
FR. in Univ. Apts. Other FR. On Campus
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Master P lan Pr ior i t iesK E Y F I N D I N G S R E V I E W
Strategically manage existing assets
Deliver additional beds appropriate for serving freshmen
– 1,321-bed deficit in freshman bed capacity by Fall 2021
Aggregate new buildings in a Freshman Village to promote student success
In the short-term, allow the off-campus market to address latent demand from upper-division students
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IMPLEMENTATION PLAN13 of 22 4/10/17
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Development Over viewI M P L E M E N T A T I O N P L A N
Fall 2020: 800 New Beds
‒ Building 1 – 400 pod-style beds‒ Building 2 – 400 pod-style beds
Galloway removal University Apts. removal (50%)
Fall 2021: 800 New Beds
‒ Building 3 – 400 pod-style beds‒ Flex Building 4– 400 suite-style
beds (248 single-occupancy) University Apts. removal (100%) Re-test student demand
Fall 2022: Belk – light renovation Graham-Hewlett – light renovation
Fall 2023: 400 New Beds
‒ Flex Building 5 – 400 beds (pods and suites)
The implementation plan calls for 1,600 new beds by Fall 2021, with an additional 400 beds pending confirmation of demand.
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Supply / Demand Reconci l ia t ionI M P L E M E N T A T I O N P L A N
Recommended 2021 Supply vs. Demand By Unit-Type
*Assumes removal of Galloway and University Apartments**Does not include demand for 524 freshman-style beds from upper division students
1,149
0
393
1,756
2,313
491 393
1,756
2,470
492 385
2,529
0
500
1,000
1,500
2,000
2,500
3,000
Traditional / Pod-Style Semi-Suites Full Suites Apartments
Existing Supply* Fall 2021 Supply Fall 2021 Demand**
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New Construct ion Projected CostsI M P L E M E N T A T I O N P L A N
New Building OverviewRevenue
Beds Total Beds Floors Estimated CostBuilding 1 - Pod (2020) 388 400 5 $28,517,443Building 2 - Pod (2020) 388 400 5 $28,517,443Building 3 - Pod (2021) 388 400 5 $29,372,966Building 4 - Flex (2021) 388 400 5 $34,567,189Sub-Total 1552 1600 $120,975,041Building 5 - Flex (2023) 387 400 5 $32,748,974Total 1939 2000 $153,724,015
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Institution Hall Name Year Completed GSF Project Cost Adjusted
Project Cost* Total Beds Cost Per Bed Cost Per GSF GSF Per Bed Unit-Type
East Carolina University Gateway (East) 2015 104,000 $29,000,000 $30,766,100 338 $91,024 $296 308 Trad. & Semi-Suite
East Carolina University Gateway (West) 2015 104,000 $29,000,000 $30,766,100 338 $91,024 $296 308 Trad. & Semi-Suite
UNC Charlotte Laurel Hall 2015 134,000 $34,800,000 $36,919,320 408 $90,489 $276 328 Full Suite
UNC Charlotte Levine Hall 2016 145,000 $39,045,000 $40,216,350 435 $92,451 $277 333 Full Suite and Apt.
Western Carolina University Noble Hall 2016 120,000 $29,300,000 $30,179,000 419 $72,026 $251 286 Hotel / Semi-SuiteUNC Greensboro Spartan Village II 2017 183,000 $42,000,000 $42,000,000 330 $127,273 $230 555 Apartment
UNC Asheville Proposed TBD 105,000 - $31,650,000 294 $107,653 $301 357 Apartment
Appalachian State Proposed TBD 107,000 - $32,100,000 352 $91,193 $300 304 Semi-Suite
Winston-Salem State Proposed TBD 69,000 - $21,850,000 291 $75,086 $317 237 Traditional / Pod
Average 119,000 $32,938,541 356 $93,135 $283 335
UNC Wilmington New Hall 1 2020 100,375 - $28,517,443 400 $71,294 $284 251 Pod
UNC Wilmington New Hall 2 2020 100,375 - $28,517,443 400 $71,294 $284 251 Pod
UNC Wilmington New Hall 3 2021 100,375 - $29,372,966 400 $73,432 $293 251 Pod
UNC Wilmington New Hall 4 2021 118,125 - $34,567,189 400 $86,418 $293 295 Semi-Suite
UNC Wilmington New Hall 5 2023 105,488 - $32,748,974 400 $81,872 $310 264 Pod / Semi-Suite
Average 104,948 $30,744,803 400 $76,862 $293 262
Delta -12% -7% 12% -17% 4% -22%
Capit a l Cost ComparisonI M P L E M E N T A T I O N P L A N
UNCW New Construction vs. Recent In-State Housing Projects
UNCW’s market demand will allow the university to deliver a more financially efficient product.
*Assumes 3% annual inflation
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Recommended Capit a l ProjectsI M P L E M E N T A T I O N P L A N
Full Capital Project List
The implementation plan is anticipated to require up to $179.5 million in capital costs (approx. $165.6 million financed)
Project Description Bed-Count Impact
Total Estimated Cost
Total Funded From Reserves Total Debt Annual Debt
Service Completion Date
New Hall #1 – Pod-Style 400 $28,517,443 $0 $28,517,443 $1,750,730 2020New Hall #2 – Pod-Style 400 $28,517,443 $0 $28,517,443 $1,750,730 2020Demolition of Galloway -389 $950,358 $950,358 $0 $0 2020Demolition of University Apts (50%) -198 $489,434 $489,434 $0 $0 2020Demolition of University Apts (100%) -198 $489,434 $489,434 $0 $0 2021New Hall #3 Pod-Style 400 $29,372,966 $0 $29,372,966 $1,803,252 2021New Hall #4 Flex Building 400 $34,567,189 $0 $34,567,189 $2,122,133 2021Belk Light Renovation 0 $7,919,646 $3,959,823 $3,959,823 $243,100 2022Graham-Hewlett Light Renovation 0 $15,902,042 $7,951,021 $7,951,021 $488,125 2022New Hall #5 Flex Building 400 $32,748,974 $0 $32,748,974 $2,010,510 2023
Master Plan Total 1,215 $179,474,929 $13,840,070 $165,634,859 $10,168,580 UNCW Housing System Beds 5,360
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Publ ic -Pr ivate Par tnerships (P3)D E L I V E R Y S T R U C T U R E S
The project scale (2,000) beds and market profile will draw strong interest from the P3 market.
UNCW’s desired risk profile fits certain structures better than others. The most desirable structures may require more revenue to be financially
feasible. UNCW’s existing housing system will maintain a stable financial position. The timing for Board of Governors approval provides UNCW an
opportunity to test the P3 market without impacting the project schedule.
Key P3 Considerations
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Para l le l Track ProcessV A L U E F O R M O N E Y
Finalize Project Definition
Develop and Release RFQ
Shortlist Proposals
Clarify and Compare Financials
Develop & Release RFP
P3 Selection
Self-Develop
Finalize Project Definition
Parallel-Track Advancement (Spring / Summer 2017)
Compare & Determine Single Path Forward
Perform Preliminary Credit & Debt Capacity
Analysis
Design & Construction
Financial Close
Approvals
Negotiations
Select Preferred Partner
Sell Bonds & Financial Close
Obtain Additional Approvals
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Next StepsU N C W H O U S I N G M A S T E R P L A N U P D A T E
B&D will finalize documentation for Housing Master Plan
The Business Affairs Committee of the Board will be asked to approve siting and conceptual framework to continue the development process
UNCW will initiate the process for evaluating potential P3 partnership and self-develop options
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HOUSING FINANCIAL REVIEW 22 of 22 4/10/17