Universities embrace creative finance strategies

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May 13, 2014

Building Design + Construction

Public-private partnership is one funding model that has become popular in recent years, especially for student housing, mixed-use buildings, parking facilities, and retail—any project with a revenue stream.

After Moody’s and other credit ratings agencies tightened their standards a few years ago, universities had to become much more disciplined about their financing mechanisms.

One such creative funding option is the public-private partnership. The PPP strategy is most popular for student housing, mixed-use buildings, parking facilities, and retail—any project with a revenue stream.

The University of Texas at Dallas recently selected Balfour Beatty and Wynne/Jackson to develop a mixed-use project near the edge of the campus. To be called “Comet Town,” the project will be financed through a land lease, whereby the university will lease the land to the developer who will build, own, and operate the building for a specific period.

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