A new 163,000 square foot student housing facility and related common space, located on the campus of Palm Beach Atlantic University. The Project is located on PBAU property and exists exclusively for the benefit of PBAU and its students.
Founded in 1968, PBAU is a comprehensive, interdenominational Christian university with a total headcount enrollment of roughly 3,700 students. The Project is located on the University’s core campus, which consists of waterfront property in the city of West Palm Beach, Florida. PBAU’s main campus is comprised of a22.7-acre downtown campus and a 77.6-acre athletics campus.
Provident Group – PBAU Properties LLC(“Provident SPE”), a newly formed special purpose entity created for the sole purpose of developing, constructing, owning and operating the Project, served as Borrower for the financing under a long-term ground lease with PBAU.
The Project provides 510 beds of new, state-of-the-art housing for PBAU students, largely replacing several outdated facilities on the campus. Following the financing, approximately 400 beds of existing housing were to be eliminated in deference to the new facility.
Financing. The Project was financed through the issuance of approximately $41 Million in tax-exempt and taxable Revenue Bonds by Palm Beach County. The bonds are secured by a Leasehold Mortgage and assignment of rents and leases, as well as a fully funded Debt Service Reserve Fund. The bonds are rated “Ba1” by Moody’s. BofA Merrill Lynch served as underwriter for the bonds.
Development and Management. Pembroke Student Housing, LLC served as developer of the Project, with construction completed by Hedrick Brothers Construction. Management is provided by PBAU.