Wichita State University has received results of a student housing market and financial analysis study to evaluate the demand for and feasibility of new housing on the WSU campus.
The study, conducted by Brailsford & Dunlavey (B&D), focused on understanding the additional student demand for housing units on the Innovation Campus in the context of Wichita State’s strategic goals. Wichita State and GLMV Architecture engaged B&D to conduct the study in July 2015.
B&D’s scope of work included stakeholder interviews, an analysis of the off-campus housing market in Wichita, an Internet-based student survey, demand analysis and financial modeling.
More than 1,500 WSU students responded to an online survey. Overall, students were satisfied with their current living arrangement, with 80 percent saying they are either highly satisfied or somewhat satisfied. Students living in Shocker Hall showed the highest level of satisfaction, with 66 percent saying they are highly satisfied.
Those living in Fairmount Towers showed the lowest satisfaction of all housing options, with 33 percent reporting they are highly satisfied.
B&D recommendations
Using results from the student survey, B&D recommends using a proprietary demand model to project the specific quantify of beds for the contemplated housing project. New units types tested in the survey consisted of a mix of two- and four-bedroom units with either private or shared bedrooms.
Relying primarily on demand from those students currently renting in the off-campus market, the model identifies demand for a new housing facility with about 400 beds.
B&D recommends phasing out Fairmount Towers because of operational inefficiencies associated with an underutilized facility in an isolated location and limited student demand.
Based on preliminary sizing of the new housing facility, B&D developed two financial models to analyze potential structures common for student housing.
One is a public/private partnership model in which the asset is owned by a 501(c)3 foundation and 100 percent debt-financed with tax-exempt bonds. The foundation would enter into a ground lease with WSU for the project site and act as the borrower.
The other option would be university financed that assumes that WSU will self-finance the project through bonds. Revenue from the housing facility would support the debt service on the bonds and operation costs.
Wichita State will continue to study the results of the report concerning the need for additional student housing on campus.
B&D has worked on numerous student housing projects for colleges and universities. Clients have included New Jersey Institute of Technology, New York Medical College, Oklahoma State University, Wake Forest University, Kansas City Art Institute, Marquette University and The University of Missouri-St. Louis.
A copy of the report is available at http://bit.ly/1Pok9pU.