Following the success of the UMass Boston Project, Provident once again joined with the UMass Building Authority and the University of Massachusetts to finance and develop a student housing project on the University’s Dartmouth campus.
The project was to serve as a centerpiece of the Dartmouth campus, including an adjacent welcome cante Greystar GEDR Development and sizeable dining facility for its students.
To assist the University in achieving its goals and objectives and in furtherance of its stated purposes, Provident Commonwealth Education Resources Inc. II (“PCER II”), a newly formed supporting organization of Provident, entered into a long-term ground lease with the University of Massachusetts Building Authority (“UMBA”), for a site on-campus that PCER II would develop, finance, construct, own and operate a 1,210-bed student housing facility designed to serve students, faculty and staff. The facility also includes a 30,000 square-foot dining section, “The Grove”, to serve University students, faculty, and staff.
The project was financed through the issuance of $132,185,000 in tax-exempt revenue bonds by the Massachusetts Development Finance Agency (“MassDevelopment”). The bonds are secured by a Leasehold Mortgage and other security agreements on the project and are to be paid solely from project revenues and other funds available under the Indenture. The bonds were structured with no recourse to MassDevelopment, UMBA or the University. The bonds were initially rated “Baa3” by Moody’s and “BBB-” by S&P. Citigroup Global Markets served as the lead underwriter for the placement of the bonds, with Wells Fargo serving as co-manager.
Greystar GEDR Development served as project developer and Greystar student housing division is the property manager. Suffolk Construction Company served as the general contractor with DiMella Shaffer Associates as the architect for the project.