UNC WILMINGTONH O U S I N G M A S T E R P L A N U P D A T E

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UNC Wilmington

AgendaU N C W H O U S I N G M A S T E R P L A N U P D A T E

Review of Key Findings Implementation Plan

– Phasing strategy– Beds by unit-type– Capital costs– Supply / demand reconciliation

Delivery Structure Implications Next Steps

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Value of On-Campus Liv ingU N C W H O U S I N G M A S T E R P L A N U P D A T E

National studies consistently find that living on campus has significant impact on academic performance

– GPA impact = estimated ½ letter grade (Center for Applied Economics & Policy Research)

– 11% higher 4-year graduation rates (Levin & Clowes)

The UNCW residential experience is delivering high value in terms of student success and retention

– Higher retention rate for freshmen who lived on campus– Faster and higher rates of graduation for sophomores who lived

on campus– Rated in the top 6% nationally (of 295 institutions) for positively

impacting students’ academic performance (Educational Benchmarking, Inc., 2016)

– Also rated in the top 6% nationally for housing’s impact on decision to return to the university (EBI, 2016)

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Value of On-Campus Liv ingH O U S I N G A N D R E S I D E N C E L I F E

Current residence’s ability to foster engagement

Students living on campus feel more connected to UNCW and their peers than those currently living off campus

74%

60%58%

62%

93%

83%

89%

84%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Helped me adjust to life atUNCW

Provided me with a senseof community

Introduced me to newfriends

Exposed me to diversity

Off Campus On Campus

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Vis ion Al ignmentK E Y F I N D I N G S R E V I E W

Increase the supply of campus housing to support UNCW’s Strategic Plan

– Current housing deficit = 995 beds– Fall 2021 deficit = approximately 2,300 beds

Comprehensively elevate the residential experience– Remove or substantially reinvest in obsolete / vision misaligned halls – Reclaim common areas and improve outdoor spaces

Maximize impact by creating functional communities– Consider “village” concepts to deepen connections to campus and peers

Identify funding strategy that reconciles housing vision with UNCW’s financial realities

– Leverage the strength of Housing’s financial position – Understand impact of delivery structures on master plan implementation

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Campus Housing Supply/DemandK E Y F I N D I N G S R E V I E W

UNCW Supply vs. Projected Demand*

*Assumes enrollment projections described in the 2016-2021 Strategic Plan (June 2016)

4,064 4,064 4,064 4,064 4,064 4,064

5,059 5,242 5,545 5,812 6,113 6,400

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2016 2017 2018 2019 2020 2021

Existing Supply Projected Demand

UNCW’s bed deficit, relative to market demand, will reach approximately 2,300 beds by 2021.

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Housing Supply Over viewK E Y F I N D I N G S R E V I E W

Hall Year Built Revenue Beds Class Style

Cornerstone Hall 2003 255 Freshman Traditional

Honors House 1998 94 Freshman Traditional

Innovation House 1998 96 Freshman Traditional

Galloway Hall 1971 378 Freshman Traditional

Belk Hall 1976 180 Freshman Semi-Suite

Graham-Hewlett 1979 374 Freshman Semi-Suite

University Apartments 1980 388 All Apartment

University Suites 1989 393 All Pod-Style

Schwartz Hall 1985 150 Freshman Pod-Style

HRL Total 2,308

RA Beds 46

HRL Avg. Occ. 100.8%

Seahawk Crossing 2009 652 Non-Freshman Apartment

Seahawk Landing 2007 594 Non-Freshman Apartment

Seahawk Village 2006 510 Non-Freshman Apartment

Total Revenue Beds 4,064

RA Beds 81Total Beds at UNCW 4,145

0%

1%

1%

2%

3%

5%

8%

12%

34%

34%

0% 10% 20% 30% 40%

Quality housing

UNCW Athletics

I do not know

Other (please specify)

Scholarship

Proximity to home

Affordability

Size of campus

Campus environment

Quality of academics

Why did you decide to attend UNCW?(2 responses allowed)

Access to the campus experience is critically important to incoming UNCW students.

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Housing Development ContinuumK E Y F I N D I N G S

Pod/Traditional

Apartment (4-BR)

Full-Suite

Semi-Suite

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Master P lan Pr ior i t iesK E Y F I N D I N G S R E V I E W

Strategically manage existing assets

– Preserve facilities, where possible, to reduce capital costs

– Schwartz / Univ. Suites = increased programming investment

– Belk / Graham-Hewlett = moderate renovations

– Remove Galloway and University Apartments from the inventory

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Capit a l Needs - Gal lowayK E Y F I N D I N G S R E V I E W

Galloway requires substantial capital investment to improve student satisfaction.

13%

41%

45%

47%

49%

53%

55%

58%

59%

61%

Galloway Hall

Belk Hall

University Apartments

Schwartz Hall

Honors House

Graham-Hewlett Hall

Innovation House

Cornerstone Hall

University Suites

Off Campus

“Very Satisfied” with current housing situation

Freshman Resident Engagement By HallCurrent

GallowayRenovated Galloway

New Pod/Trad.

Total Beds 389 331 331

Revenue Beds 378 320 320

Year Online - 2020-2021 2020-2021

Construction Cost per SF - $195 $195

Total Cost per SF - $260 $260

GSF 64,912 64,912 82,813

Total Project Cost - $18.9 mm $23.5 mm

Rental Rate $2,599 $2,989 $3,381 Cumulative Cash Flow

through 2026-2027 - $558,789 $1,368,708

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Capit a l Needs – Univers i ty Apts .K E Y F I N D I N G S R E V I E W

Freshmen living in University Apartments report lower levels of engagement than freshmen living in other residence halls.

Freshman Resident Engagement By Hall Opportunity to double housing capacity on University Apartments site

74%

89%

72%

79%

86%

77% 79%

89%

96%

89%92% 94%

82%87%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Connectedme to

campuscommunity

Helped meadjust to life

at UNCW

Sense ofcommunity

Introducedme to new

friends

Enhancedoverall

experience

Positiveimpact onacademics

Exposed meto diversity

FR. in Univ. Apts. Other FR. On Campus

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Master P lan Pr ior i t iesK E Y F I N D I N G S R E V I E W

Strategically manage existing assets

Deliver additional beds appropriate for serving freshmen

– 1,321-bed deficit in freshman bed capacity by Fall 2021

Aggregate new buildings in a Freshman Village to promote student success

In the short-term, allow the off-campus market to address latent demand from upper-division students

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IMPLEMENTATION PLAN13 of 22 4/10/17

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Development Over viewI M P L E M E N T A T I O N P L A N

Fall 2020: 800 New Beds

‒ Building 1 – 400 pod-style beds‒ Building 2 – 400 pod-style beds

Galloway removal University Apts. removal (50%)

Fall 2021: 800 New Beds

‒ Building 3 – 400 pod-style beds‒ Flex Building 4– 400 suite-style

beds (248 single-occupancy) University Apts. removal (100%) Re-test student demand

Fall 2022: Belk – light renovation Graham-Hewlett – light renovation

Fall 2023: 400 New Beds

‒ Flex Building 5 – 400 beds (pods and suites)

The implementation plan calls for 1,600 new beds by Fall 2021, with an additional 400 beds pending confirmation of demand.

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Supply / Demand Reconci l ia t ionI M P L E M E N T A T I O N P L A N

Recommended 2021 Supply vs. Demand By Unit-Type

*Assumes removal of Galloway and University Apartments**Does not include demand for 524 freshman-style beds from upper division students

1,149

0

393

1,756

2,313

491 393

1,756

2,470

492 385

2,529

0

500

1,000

1,500

2,000

2,500

3,000

Traditional / Pod-Style Semi-Suites Full Suites Apartments

Existing Supply* Fall 2021 Supply Fall 2021 Demand**

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New Construct ion Projected CostsI M P L E M E N T A T I O N P L A N

New Building OverviewRevenue

Beds Total Beds Floors Estimated CostBuilding 1 - Pod (2020) 388 400 5 $28,517,443Building 2 - Pod (2020) 388 400 5 $28,517,443Building 3 - Pod (2021) 388 400 5 $29,372,966Building 4 - Flex (2021) 388 400 5 $34,567,189Sub-Total 1552 1600 $120,975,041Building 5 - Flex (2023) 387 400 5 $32,748,974Total 1939 2000 $153,724,015

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Institution Hall Name Year Completed GSF Project Cost Adjusted

Project Cost* Total Beds Cost Per Bed Cost Per GSF GSF Per Bed Unit-Type

East Carolina University Gateway (East) 2015 104,000 $29,000,000 $30,766,100 338 $91,024 $296 308 Trad. & Semi-Suite

East Carolina University Gateway (West) 2015 104,000 $29,000,000 $30,766,100 338 $91,024 $296 308 Trad. & Semi-Suite

UNC Charlotte Laurel Hall 2015 134,000 $34,800,000 $36,919,320 408 $90,489 $276 328 Full Suite

UNC Charlotte Levine Hall 2016 145,000 $39,045,000 $40,216,350 435 $92,451 $277 333 Full Suite and Apt.

Western Carolina University Noble Hall 2016 120,000 $29,300,000 $30,179,000 419 $72,026 $251 286 Hotel / Semi-SuiteUNC Greensboro Spartan Village II 2017 183,000 $42,000,000 $42,000,000 330 $127,273 $230 555 Apartment

UNC Asheville Proposed TBD 105,000 - $31,650,000 294 $107,653 $301 357 Apartment

Appalachian State Proposed TBD 107,000 - $32,100,000 352 $91,193 $300 304 Semi-Suite

Winston-Salem State Proposed TBD 69,000 - $21,850,000 291 $75,086 $317 237 Traditional / Pod

Average 119,000 $32,938,541 356 $93,135 $283 335

UNC Wilmington New Hall 1 2020 100,375 - $28,517,443 400 $71,294 $284 251 Pod

UNC Wilmington New Hall 2 2020 100,375 - $28,517,443 400 $71,294 $284 251 Pod

UNC Wilmington New Hall 3 2021 100,375 - $29,372,966 400 $73,432 $293 251 Pod

UNC Wilmington New Hall 4 2021 118,125 - $34,567,189 400 $86,418 $293 295 Semi-Suite

UNC Wilmington New Hall 5 2023 105,488 - $32,748,974 400 $81,872 $310 264 Pod / Semi-Suite

Average 104,948 $30,744,803 400 $76,862 $293 262

Delta -12% -7% 12% -17% 4% -22%

Capit a l Cost ComparisonI M P L E M E N T A T I O N P L A N

UNCW New Construction vs. Recent In-State Housing Projects

UNCW’s market demand will allow the university to deliver a more financially efficient product.

*Assumes 3% annual inflation

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Recommended Capit a l ProjectsI M P L E M E N T A T I O N P L A N

Full Capital Project List

The implementation plan is anticipated to require up to $179.5 million in capital costs (approx. $165.6 million financed)

Project Description Bed-Count Impact

Total Estimated Cost

Total Funded From Reserves Total Debt Annual Debt

Service Completion Date

New Hall #1 – Pod-Style 400 $28,517,443 $0 $28,517,443 $1,750,730 2020New Hall #2 – Pod-Style 400 $28,517,443 $0 $28,517,443 $1,750,730 2020Demolition of Galloway -389 $950,358 $950,358 $0 $0 2020Demolition of University Apts (50%) -198 $489,434 $489,434 $0 $0 2020Demolition of University Apts (100%) -198 $489,434 $489,434 $0 $0 2021New Hall #3 Pod-Style 400 $29,372,966 $0 $29,372,966 $1,803,252 2021New Hall #4 Flex Building 400 $34,567,189 $0 $34,567,189 $2,122,133 2021Belk Light Renovation 0 $7,919,646 $3,959,823 $3,959,823 $243,100 2022Graham-Hewlett Light Renovation 0 $15,902,042 $7,951,021 $7,951,021 $488,125 2022New Hall #5 Flex Building 400 $32,748,974 $0 $32,748,974 $2,010,510 2023

Master Plan Total 1,215 $179,474,929 $13,840,070 $165,634,859 $10,168,580 UNCW Housing System Beds 5,360

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Publ ic -Pr ivate Par tnerships (P3)D E L I V E R Y S T R U C T U R E S

The project scale (2,000) beds and market profile will draw strong interest from the P3 market.

UNCW’s desired risk profile fits certain structures better than others. The most desirable structures may require more revenue to be financially

feasible. UNCW’s existing housing system will maintain a stable financial position. The timing for Board of Governors approval provides UNCW an

opportunity to test the P3 market without impacting the project schedule.

Key P3 Considerations

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Para l le l Track ProcessV A L U E F O R M O N E Y

Finalize Project Definition

Develop and Release RFQ

Shortlist Proposals

Clarify and Compare Financials

Develop & Release RFP

P3 Selection

Self-Develop

Finalize Project Definition

Parallel-Track Advancement (Spring / Summer 2017)

Compare & Determine Single Path Forward

Perform Preliminary Credit & Debt Capacity

Analysis

Design & Construction

Financial Close

Approvals

Negotiations

Select Preferred Partner

Sell Bonds & Financial Close

Obtain Additional Approvals

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Next StepsU N C W H O U S I N G M A S T E R P L A N U P D A T E

B&D will finalize documentation for Housing Master Plan

The Business Affairs Committee of the Board will be asked to approve siting and conceptual framework to continue the development process

UNCW will initiate the process for evaluating potential P3 partnership and self-develop options

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HOUSING FINANCIAL REVIEW 22 of 22 4/10/17