At the October 17 Board of Regents meeting in Las Vegas, UNR President Brian Sandoval will present an information-only item regarding a new proposed residential project at 600 University Way in downtown Reno.
The Developer, Scenic Investments, who owns the vacant lot to be developed, is proposing to the University of Nevada, Reno to construct a housing facility to serve its graduate students, faculty members, and staff on a site two blocks from the southern end of campus, adjacent to University Village. The “Project” will comprise approximately 400 units, primarily studios, one-bedroom units, and two-bedroom units. The Project would be developed and financed independently of UNR, but with UNR’s input. The Project would transfer ownership to UNR upon the maturity of the bond financing.
Project Agreement
The Board of Regents, on behalf of the University, would enter into an Affiliation Agreement with the Owner/Borrower and a Predevelopment Agreement with the Developer for the purposes of developing the Project. The Affiliation Agreement would provide for the coordination of certain management and marketing efforts for the Project with prospective University residents. The Predevelopment Agreement would outline the conditions under which the Developer will expend resources to design and develop the Project to the University’s desired specifications.
Financing Security
Neither the University nor the Board of Regents would have any financial obligations under the proposed bond financing. The bonds would be structured as a “Project financing” and be payable solely from the revenues of the Project.
Financing Structure
The Project’s development, design, and construction will be funded by long-term, fixed rate tax-exempt and taxable bonds secured by resident rent payments over 40 years upon financial close. The non-profit Owner/Borrower will also grant a first lien on its fee simple interest in the Project as further security for the bonds.
Ownership and Management
The Project will be owned by the non-profit Owner/Borrower during the term of the bonds and will revert to the University upon its retirement. Upon completion of construction, the Project will be managed by Redstone Residential, a leading operator of student housing projects nationwide.
Project Overview
The project address is 600 University Way, between University Way and Lake Street, and 6th and 7th Streets. The project will consist of approximately 400 units, primarily studios, 1-bedroom and 2-bedroom apartments. Project amenities include a swimming pool, clubhouse, fitness center, study area, package delivery lockers, bbq area, game room, cafe, business center, outdoor cinema, fire pit areas and on-site management.
Construction is anticipated to begin in 2026, and be completed in August 2028.
The project will create more dedicated housing for graduate students, medical students, faculty and staff. There is no financial obligation for UNR.
Redstone Residential and Scenic Investments will jointly develop the Project. They are currently in the process of selecting a contractor.
Redstone Residential will be the manager of the Project.
Redstone Residential is one of the largest student housing operators in the country, managing over 30,000 beds of student housing across 16 different states.
Redstone Residential has successfully executed on difficult lease-ups, complex value-add strategies, and unique asset re-positionings. They operate boutique developments, resort-style Projects, and everything in between.
Owner/Borrower
National Campus and Community Development (“NCCD” or the “Corporation”) will be the sole member of the Owner/Borrower (University Village Student Housing, LLC), a limited liability company to be formed for the sole purpose of this Project.
• NCCD is a national non-profit organization that engages in a broad range of charitable and educational activities that include promoting healthy communities, promoting education, and lessening the burdens of government. The membership of NCCD comprises colleges and universities that have been assisted by NCCD.
• To date, NCCD has assisted 14 colleges and universities, including 10 student living facilities with over 8,000 beds. NCCD has ownership responsibility for more than $1.3 billion of higher education facilities, with financing terms ranging from 30 to 40 years.
Issuer
• The Public Finance Authority (“PFA”) is authorized to issue tax-exempt bonds to assist local governments, non-profit organizations, and businesses by promoting economic, cultural, and community development.
• The National League of Cities, the Wisconsin Counties Association, and the League of Wisconsin Municipalities sponsor PFA.
You can find the docs for the upcoming Board of Regents meeting here and here.