Real Estate attorney Cherish Hollowed was quoted in a May 9, 2016, Law360 article, Colleges Team Up With Developers To Fill Housing Gap (subs. required), discussing alternative student housing accommodations as colleges and universities across the country face housing shortages amidst rising student enrollments. With little space for new construction, institutions are looking to developers for properties on the outskirts of campuses to fill the student accommodation gap.
Agreements between universities and developers can be provide upsides for both parties as developers bring planning, capital, and brick-and-mortar work to the table while partnering with universities gives developers a steady rental income stream with less risk.
“The more successful developers are partnering with the universities right at the onset of looking at a project,” said Hollowed. “Getting there at an early stage, it reduces downside of the developer.”
“It avoids the university having to spend the time, money, effort and distraction in developing it,” Hollowed added.
In California, development is taking the form of conversion of existing structures which can present a certain set of entitlement concerns developers and universities have to be aware of.
“It requires the creativity of the developer in those more expensive markets, to find sites that are appropriately situated to be redeveloped into student housing, and then be near what the university's needs are,” Hollowed said.