NJCU CLOSES ON SALE OF $50,645,000 MILLION IN BONDS FOR STUDENT HOUSING; BUILDING TO LAUNCH WEST CAMPUS DEVELOPMENT
New Jersey City University (NJCU) finalized the sale of $50,645,000 million par amount of Revenue Bonds issued by the New Jersey Education Development Authority to support a new 425-bed student housing development.
“Our success in finalizing this bond sale opens the way for tremendous progress and growth, which are critical to the future well-being of the University and our community,” said Dr. Sue Henderson, NJCU President.
She added, “This bond sale is game-changing. We are moving our University priorities forward with funding that is now available because of these bonds, and our students, faculty, and academic programs will benefit from this.”
This bond sale is the first in the country in 2015 for student housing. It is also the first P3 (privatized housing) project in the State of New Jersey in 2015. NJCU’s P3 student housing project is being developed under the 2009 Economic Stimulus Act.
Dr. Aaron Aska, NJCU Vice President for Administration and Finance, said, “The P3 project designation for the student housing on our West Campus has considerable benefits. By joining three entities in partnership – the University, the NJCU Foundation, and our developer, Ambling University Development Group – NJCU is able to have a leading developer in the field construct attractive, well-designed student housing, while mitigating risk and improving timely project delivery."
RBC Capital Markets acted as lead underwriter; Ballard Shahr LLP, served as bond counsel; Hawkins Delafield & Wood LLP served as counsel to the University; and Windels Marx Lane & Mittendorf LLP served as counsel to NJCU Foundation.
The bonds have maturity dates ranging from 2018 to 2047. They have been assigned an investment grade rating by (BBB-) by Standard & Poors, one of the country’s three major agencies.
There will be $400 million in new construction of facilities and buildings on the NJCU West Campus in Jersey City. This construction is an opportunity for revenue enhancement for NJCU and a larger urban economic development role through the wise utilization of 21 acres of land it acquired. The new buildings will serve both University and community purposes, including student housing, academic instruction, performing arts, retail, and market-rate housing.
