P3 CONNECT
July 20, 2015
Jim Tucker
Senior Vice President
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WHY P3s? – FREEING CAPITAL FOR INVESTMENTS IN
CORE ACADEMIC/RESEARCH MISSION
• Focus University investments on modernization of academic and research
facilities
• Generate annual ground rents and unlocking the value of the land
• Add dynamic new street-level retail along major corridors
• Provide homeownership opportunities and neighborhood amenities such
as childcare facility
Papadakis Integrated
Sciences Building, 2011
• 133,800 SF, $69M
URBN Center, 2012
• 175,569 SF, $47M
Gerri C. LeBow Hall, 2013
• 177,500 SF, $92M 2
CHESTNUT SQUARE – AMERICAN CAMPUS COMMUNITIES
Winner, 2015 Philadelphia Urban Land Institute Willard G. “Bill” Rouse III Award forSECTION
Excellence
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Opened Fall 2013
361,000 square feet, 861 beds
$100 million
25,000 square feet of retail
Yogorino, Shake Shack, Joe Coffee, Zavino,
coZara, Plaza Artist Materials & Picture
Framing, Franklin Mint Federal Credit Union
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UNIVERSITY CROSSINGS – AMERICAN CAMPUS COMMUNITIES
Winner INNOVATOR Award for “Most Creative Public/Private Partnership” by Student Housing Business
magazine
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Land, sub-surface and air rights conveyed to Drexel in August 2013
Option to transfer building to Drexel at any time of DU’s choosing
ACC investing $30M in renovations
Total value: $68.5 million
1,016 beds
60-foot back-lit signage
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THE SUMMIT – AMERICAN CAMPUS COMMUNITIES
Winner, Philadelphia Business Journal’s Heavy Hitters of Real Estate “Top Deals” Award
2015
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Opening September 2015
580,000 square feet, 1,316 beds
$170 million
18,000 square feet retail
21,000 square foot student dining
center
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THE SUMMIT – URBAN EATERY
$9.3M Capital Investment from Sodexo
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THE STUDY AT UNIVERSITY CITY – HOSPITALITY 3
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Opening Fall 2016
145,000 square feet
212 rooms
Restaurant, Conference Center, Fitness Center
Extended-stay rooms on top floor
Operated by Study Hotels
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UNIVERSITY CITY HIGH SCHOOL SITE – JOINT VENTURE
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• 14-acre site adjacent to west end of Drexel’s campus
• Acquired June 2014 by Drexel University-Wexford Science & Technology
joint venture
• Demolition of final building expected in fall 2015
• 2.7 million gross square feet of potential development
• $1 billion development value
• Wexford development plans include: residential, research, office, retail
• Winner, Philadelphia Business Journal’s Heavy Hitters of Real Estate “Top
Deals” Award, 2015
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MIXED-USE/CHILDCARE DEVELOPMENT – 3201 RACE
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164 market-rate apartments
12 owner-occupied two-bedroom townhomes
175-capacity childcare facility run by third-party operator
Currently in ground lease negotiations with Radnor Property Group
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ADDITIONAL FUNDING STRATEGIES FOR CAPITAL PROJECTS
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• RACP – State Grant Program: Used to help fund Papadakis ISB and
LeBow Hall construction
• Tax Credits:
• Dornsife Center for Neighborhood Partnerships – New Market and
Historic Tax Credits
• Sheller 11th Street Family Health Services Center – New Market
Tax Credits
• Kline Institute for Trial Advocacy – Pursuing Historic Tax Credits
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Key Ground Lease Terms
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Key University Ground Lease Terms for P3 DEVELOPMENTS
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Ground Rent
Fee Not Subordinated
Completion Guarantee
Restrictive Covenant Against the Land (Deed)
Loan to Value Ratio Limits during construction and for permanent
financing to keep Lessee's equity in the project
• Purchase Option
• Reserve Fund for Replacements
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