In a strategic acquisition aligned with UCF and Valencia College’s academic missions, Provident acquired UnionWest—a landmark 15-story mixed-use development at Creative Village in downtown Orlando. Backed by $138 million in tax-exempt and taxable bonds, the transaction drew strong investor demand despite a Ba1 rating, achieving favorable interest rates and ensuring long-term institutional alignment.
Overview. In 2023, Provident was approached by the original developers of UnionWest, a large 15-story mixed-use building located on the downtown campus of the University of Central Florida (“UCF”) in downtown Orlando, Florida (the “Project”). Situated within Creative Village, an urban development in downtown Orlando aimed at fostering innovation and community engagement, the Project includes a 10-floor, 641-bed student housing facility, 102,000 square feet of academic space, 12,300 square feet of ground floor retail, and 602 spaces of structured parking. Ownership wished to exit the Project to free up capital to continue their development of Creative Village. Given the strong commitment to the Project from UCF as well as Valencia College, a member of the Florida College System, there were significant synergies to allowing Provident to acquire the Project, while advancing a formal affiliation with UCF, for the benefit of both universities.
Financing. The acquisition was financed in December 2024, through the issuance of approximately $138 million tax-exempt and taxable Student Housing Revenue Bonds by the Capital Projects Finance Authority. The financing included a combination of both senior and subordinate bonds, the latter of which were structured as convertible capital appreciation bonds. Security is provided by revenues of the Project, including 2 long-term university lease agreements, for the entirety of the academic space.
Despite receiving a Ba1 rating from Moody’s, the transaction garnered significant investor interest. In all, the transaction achieved an all-in Total Interest Cost of 5.10% on the senior lien tax-exempt bonds, and under 5.50% for the aggregate financing across both liens. Bank of America served as the Underwriter on the sale of the Bonds.
Development and Management. The Project is managed by Campus Advantage, Franklin Street Management Services, and Platinum Parking for the student housing, retail, and parking components, respectively.
