Provident takes pride in being chosen as the Owner/Borrower (through Provident Group – UTK Properties LLC) for this endeavor and working with the University, RISE Development Company, Brailsford & Dunlavey, RBC Capital Markets, and numerous other stakeholders to bring these projects to the University and its students.
Following the successful January 2024 financing of more than 1,950 beds of new on-campus student housing, on June 12th, 2024Provident reached financial close on $129.5 million of tax-exempt and taxable revenue bonds for the second phase of essential student housing projects on the flagship campus of the University of Tennessee in Knoxville, known as the Lake Loudoun Project. The Project consists of1,028 beds across 295 units of primarily semi-suite style housing for freshman and sophomore students.
UT Knoxville, faced with growing enrollment, aging on-campus facilities, and a rapidly growing wait list from new and continuing students, implemented a Housing Inventory Management Plan that includes the Phase1 Project financed in January, as well as this Phase 2 Project, known as the Lake Loudoun Project. Combined, the two phases will bring a total of2,982 beds of new student housing across 847 units.
Financing. Phase II was financed through the issuance of $129.51 million fixed rate tax-exempt and taxable Student Housing Revenue Bonds by The Health, Educational and Housing Facility Board of the County of Knox, amortizing over 40 years. Security is provided by revenues of the Projects, combined with bond insurance provided by Build America Mutual. The strength of the combined security enhancements provides for initial S&P ratings of “BBB-” and “AA” for the underlying and insured credits, respectively. Provident was represented by Fishman Haygood, Baton Rouge, LA. Bass, Berry, Sims, Knoxville, TN served as Bond Counsel and Kutak Rock, Denver, CO served as Special Tax Counsel.
Development &Management. RISE served as Developer, Blaine Construction as General Contractor, and Cope Architecture as Architect. UT is responsible for managing the Projects.
