The University System of Georgia has selected Corvias Campus Living to develop and manage nine of the system’s campuses under a $517 million deal.
A first phase will include 3,683 new beds and 6,195 existing beds, comprising more than 3 million square feet of space, according to a release sent on behalf of Corvias. The agreement is for the next 65 years.
Corvias beat out Balfour Beatty Campus Solutions LLC and Education Realty Trust Inc. for the job, the Atlanta Business Chronicle reported. Corvias started its student housing division in 2012 in Cary, N.C.
Georgia voters recently approved tax exemptions for private entities that run housing and parking operations for the university system.
Corvias’ public-private partnership model offers the following benefits, according to the press release:
- Performance-based fees, which tie compensation to metrics, are awarded at the discretion of the board of regents and individual campuses to ensure alignment of interests between Corvias and the university system.
- A reinvestment account that is projected to exceed $2 billion over the life of the partnership will ensure that all facilities are left in like-new condition at the end of the 65-year program. These guaranteed funds allow each building to go through minor renovations, major renovations and full replacements five times without requiring additional capital.
- $5.6 million of upfront funding for capital repairs and renovations to take place in the first year on existing housing.
- Local economic impact in the state of Georgia. Corvias has already hired seven Georgia-based architecture, engineering and construction firms, and will seek additional subcontractors.