The Texas A&M University System has negotiated a private-public partnership to build a 3,402-bed student housing complex on 48 acres of land near its flagship College Station campus. Park West will be the largest of the campus’s five P3s, which collectively will generate $900 million in revenue for the school, wrote John Sharp, the university system’s chancellor, and Michael Young, the campus’s president in an op-ed in the Dallas Morning News.
The estimated $360 million cost of developing the project will be paid for through bonds issued by New Hope Cultural Education Facilities Finance Corporation, an instrumentality of the town of New Hope, more than 200 miles north of College Station, according to the Texas Tribune.
The system will lease the latest parcel to NCCD-College Station Properties LLC, which plans to hire Servitas, LLC to develop the project. Servitas Management Group, LLC will manage the complex for 30 years. NCCD-College Station has agreed to pay Texas A&M $18.5 million up front and $600 million — in annual payments of $20 million — for the length of the lease, after which the system will assume ownership of the property, reported the Houston Chronicle.
Park West will include three large multi-story apartment buildings, 12 low-rise garden-style buildings, swimming pools, nearly 2,900 parking spaces and about 4,000 square feet of retail space. The apartments are expected to open before the 2017-2018 school year.
Since Sharp took over as chancellor, the university system has negotiated agreements to outsource its on-campus dining, building maintenance and landscaping services. Texas A&M undertook its first student housing project housing P3 in 1996, Phillip Ray, now vice chancellor of business affairs for the system, explained in an op-ed in Student Housing Business.
Including this latest project, Servitas, LLC will have developed all five of the College Station campus housing P3s. The developer has planned or completed 33 such projects in 10 states, comprising 15,393 student housing beds since 2003. The total project costs exceed $942.5 million.