Provident is proud to have partnered with the LSU Health Sciences Center and the LSU Health Foundation to develop a new, state-of-the-art student and faculty housing facility in the heart of the medical district in downtown New Orleans.
The project consists of 473 apartment units (579 beds) and associated amenities and improvements for the use and benefit of the students of LSU HSC, full-time students at Delgado Community College, visiting faculty at LSU HSC on a temporary basis, persons participating in any LSU HSC sponsored activity or program, full-time faculty and staff of LSU HSC, physicians and staff of University Medical Center New Orleans (including Tulane Medical Center).
The property to be acquired will be gifted to the Board of Supervisors of LSU by the Provident Group – HSC Properties Inc. (Provident SPE), the Borrower, ground leased to the LSU Health Foundation and ultimately subleased back to the Provident SPE for 40 years.
Provident worked with the LSU HSC, the Foundation and the rest of the development, legal and finance team over a period of almost 3 years to ensure a successful execution and to make this project a reality.
The Project was financed in October 2020 through the issuance of $100,000,000 in tax-exempt and taxable senior and subordinate lien revenue bonds by the Louisiana Public Facilities Authority. The bonds are secured by a Leasehold Mortgage and Pledge of Leases and Rents, with a final maturity of 37 years. The bonds are not rated and were underwritten by RBC Capital Markets and Citigroup Global Markets. Structuring assistance was provided by Piedmont Securities LLC, Atlanta GA.
Once completed, the student housing complex will be owned and operated by the Provident SPE with management services provided by the Michaels Organization. As is the case with nearly all Provident Projects, a local board of managers representing the interests of the various stakeholders, LSU Foundation, LSU HSC and Provident, will oversee operations of the Project, approve annual budgets and establish policies.
Located in downtown New Orleans, adjacent to LSU HSC at the corner of Poydras and South Johnson Streets, the Project will bring badly needed, quality housing in the medical district surrounding the Health Sciences Center.