Private Dorm Next?
In the recession, Northeastern leased Boston’s first privately developed dorm so it could put money towards its $250M science center it hopes to break ground on this month. (People do crazy stuff in the name of science, though this was pretty sensible.) The private $120M dorm to be completed this year, may signal a new tradition for this student-rich market.
The 720-bed East Village dorm being developed by Phoenix Property of Dallas allows Northeastern to fulfill more of its capital needs, chief of campus planning and development Kathy Spiegelman tells us. The upcoming science/engineering center will be a “statement” facility that furthers the university’s transformation to a more research-oriented institution. The savings it achieved on the dorm, and perhaps future private deals, may allow it to invest in existing buildings that need renovation or adaptive reuse. Going forward, Northeastern will look at other partnerships that make sense for it, she says. (They're in the Valentine's spirit.)
While the city wants universities to provide more student housing, the East Village deal was “controversial” and delayed by litigation, Kathy says. There was anxiety that a privately owned dorm may be converted to other uses in the future, which the university cannot control. (In the blink of an eye there could be an indoor circus on campus.) Northeastern also can’t oversee the end product, which is being built around two historic structures-the YMCA and Hastings Hall, and how it will wear over time, she says. The deal calls for Northeastern to rent East Village for 15 years with an option to buy at various times. The developer pays the property taxes and for construction financing, so renting is more expensive than owning for the university, she says.
Phoenix agreed to acquire the site in ’07, sealed the deal with Northeastern in ’09 and closed in '11, recalls PPC EVP Jason Runnels. Since ’09 nationwide, many new, privately developed student beds have been built; the South and Southeast are oversupplied. But Phoenix is focusing on high-barrier markets like Boston where, Jason says, he’s seeking new sites: downtown, in Back Bay, the Longwood Medical Area, Allston and in Cambridge. PPC is happy to be the first private student housing developer in Boston, which is short 25,000 beds, he says. (You don't wanna know where those students are sleeping right now.) A lot of schools need more student housing but find it difficult to allocate the capital when they have pressing academic needs, he says.
The 17-story East Village, designed by DiMella Shaffer, is a living/learning facility that incorporates classrooms and a 7,000 SF multi-purpose room with the housing. The units are a mix of 627 dorm-style rooms--450 SF--and 96 apartment-style suites that average 950 SF and feature three or four bedrooms. “Theoretically,” Jason says, one day they could be “true multifamily rentals.” It’s been challenging to build next to historic structures and the New England Conservatory of Music. The construction crew sealed the conservatory windows to prevent the invasion of dust and noise and installed vibration and noise detectors to safeguard performances at Jordon Hall. (Jackhammers don't usually go that well with Bach.)
