Durham, North Carolina

Chidley, George Street & Lawson Residence Halls

Project Summary

In June 2019, working with NCCU and the rest of our partners, Provident closed on the financing of a multi-phased student housing project located in the center of the NCCU campus in Durham, North Carolina. The Project included the financing and development of 1,274 beds of new and replacement housing for NCCU.

Cost
$109,405,000
Size
Phase I: 792 Beds / Phase II: 482 Beds
Role
Owner / Borrower / Co-Developer
Development Team
Corvias
Project Site
Affiliate
University
EMMA Link
EMMA

In June 2019, working with NCCU and the rest of our partners, Provident closed on the financing of a multi-phased student housing project located in the center of the NCCU campus in Durham, North Carolina. The Project included the financing and development of 1,274 beds of new and replacement housing for NCCU.

The 1st Phase of the Project consisted of the Chidley residence hall and the George Street residence hall. With 792 student housing beds, along with additional dining, classroom and common area amenities, Phase I accommodated a growing need for housing on NCCU’s campus and came on-line in Fall 2020. Phase II, financed concurrently, includes an additional 482 beds at the Lawson Street residence hall, coming on-line in 2021. Upon completion, Baynes Hall, a dated 392 bed dorm facility on campus, will be demolished.

Provident Group – NCCU Properties LLC, a newly formed special purpose entity, the sole member of which is Provident, entered a long-term ground lease with NCCU for the sites on its campus. Upon repayment of the bonds, the Lease will terminate, with the facilities and related improvements reverting to the University for no additional financial consideration.

Financing

The project was financed through the issuance of $109,405,000 in tax-exempt and taxable student housing revenue bonds by the Arizona Industrial Development Authority, an Arizona conduit issuer licensed to issue bonds in all 50 states. The bonds are secured by a Leasehold Mortgage and are to be paid from revenues and assets of the Project and payments under the Amenity Space Lease. The bonds are insured by Build America Mutual and therefore rated AA by S&P, and initially obtained an underlying rating of Baa3 from Moody’s. RBC Capital Markets served as lead underwriter of the bonds.