American UniversityAmherst CollegeBabson College

Bentley UniversityBerkshire Community College

Bethel UniversityBloomsburg University of

PennsylvaniaBoston College

Bowdoin CollegeBowling Green State University

Brandeis UniversityBristol Community College (MA)

Brown UniversityBryant University

Bryn Mawr CollegeBucknell University

Bunker Hill Community College (MA)California University of PennsylvaniaCape Cod Community College (MA)

Carleton CollegeCarnegie Mellon University

Central State UniversityChamplain College

Chapman UniversityCheyney University of Pennsylvania

Cincinnati State Technical and Community College

Claremont McKenna CollegeClarion University of Pennsylvania

Clemson UniversityCleveland State University

Colgate UniversityCollege of the Holy Cross

The College of WoosterColumbus State Community College

Connecticut CollegeCornell University

Cuyahoga Community CollegeDartmouth CollegeDavidson College

Drew UniversityDrexel UniversityDuke University

Duquesne UniversityEast Stroudsburg University of

PennsylvaniaEastern Oregon University

Edinboro University of PennsylvaniaElms College

Emma Willard SchoolFairfield University

Fitchburg State CollegeFlorida Institute of Technology

Florida State UniversityFranklin & Marshall College

Franklin UniversityFranklin W. Olin College of

EngineeringGallaudet University

George Mason UniversityGeorgetown University

Georgia Institute of TechnologyGettysburg CollegeGonzaga University

Greenfield Community College (MA)Grinnell College

Gustavus Adolphus CollegeHamilton College

Hamline UniversityHampshire College

Harper CollegeHolyoke Community College

Illinois Institute of TechnologyIndiana University

Indiana University of PennsylvaniaIndiana University - Purdue University

IndianapolisIowa State University

Ithaca CollegeKansas State University

Keene State CollegeKent State University

Kutztown University of PennsylvaniaLakeland Community College

Le Moyne CollegeLebanon Valley College

Lewis & Clark CollegeLock Haven University of

PennsylvaniaLong Island University Brooklyn

CampusLong Island University C.W. Post

Lorain County Community CollegeLoyola College in Maryland

Loyola Marymount UniversityMacalester College

Manchester CollegeMansfield University of Pennsylvania

Massachusetts Bay Community College (MA)

Massachusetts Institute of TechnologyMassasoit Community College (MA)

Medical University of OhioMiami University

Michigan State UniversityMiddlebury College

Middlesex Community College (MA)Millersville University of Pennsylvania

Missouri University of Science and Technology

Mount Holyoke CollegeMount Wachusett Community College

New Mexico State UniversityThe New School

New York UniversityNorth Shore Community College (MA)

Northeastern Ohio Universities Colleges of Medicine

Northeastern UniversityNorthern Essex Community College

(MA)Northwestern University

Nova Southeastern UniversityOhio Agricultural Research and

Development CenterOhio University - Athens

Oregon Institute of TechnologyOregon State University

Owens State Community CollegePace University

Pacific Lutheran UniversityPlymouth State University

Polytechnic Institute of NYU Pomona College

Portland State UniversityPrinceton University

Purdue UniversityQuinsigamond Community College

(MA)Rensselaer Polytechnic Institute

Rider UniversityRoger Williams University

Rowan UniversityRoxbury Community College

Rutgers UniversitySaint Louis University

Saint Mary’s College (IN)Saint Mary’s College of California

Seattle Pacific UniversitySeattle University

Shawnee Sate UniversityShippensburg University of

PennsylvaniaSiena College

Sinclair Community CollegeSlippery Rock University of

PennsylvaniaSmith College

Southern Methodist University Southern Oregon University

St. Lawrence UniversitySUNY – Purchase College

Swarthmore CollegeSyracuse University

Temple UniversityTexas A&M University

The Catholic University of AmericaThe College of Saint Rose

The Johns Hopkins UniversityThe Ohio State University

The Pennsylvania State UniversityThe Sage Colleges

The University of AlabamaThe University of Alabama at

BirminghamThe University of Alabama in

HuntsvilleThe University of Dayton

The University of MississippiThe University of Oklahoma

Thomas Jefferson University Trinity College

Tufts UniversityUniversity of California San Francisco

Medical CenterUniversity of Akron

University of Alaska FairbanksUniversity of Arkansas

The University of Central ArkansasUniversity of Cincinnati

University of Colorado at BoulderUniversity of Denver

University of HartfordUniversity of Illinois at ChicagoUniversity of Illinois at Urbana-

ChampaignThe University of Maine

University of Maine at AugustaUniversity of Maine at Farmington

University of Maine at MachiasUniversity of Maine at Presque Isle

University of Maine at Fort KentUniversity of Maryland

University of Massachusetts AmherstUniversity of Massachusetts Boston

University of Massachusetts Dartmouth

University of Massachusetts LowellUniversity of Michigan

University of Minnesota University of Missouri

University of Missouri - Kansas CityUniversity of Missouri - St. Louis

University of New HampshireUniversity of New HavenUniversity of Notre Dame

University of OregonUniversity of Pennsylvania

University of PortlandUniversity of Redlands

The University of Rhode Island, Narragansett Bay

The University of Rhode Island, Feinstein Providence

The University of Rhode Island, Kingston

University of RochesterUniversity of San Diego

University of San FranciscoUniversity of St. Thomas (TX)University of Southern Maine

University of ToledoUniversity of VermontUpper Iowa University

Utica CollegeVassar College

Virginia Commonwealth UniversityVirginia Department of General

ServicesWagner College

Wellesley CollegeWesleyan University

West Chester University of Pennsylvania

West Virginia University Western Oregon University

Wheaton College (MA)Whitworth University

Widener UniversityWilkes UniversityWilliams College

Worcester Polytechnic InstituteWorcester State College

Wright State UniversityXavier University

Yeshiva UniversityYoungstown State University

P3 Connect

July 2015

P3s in Higher Education Housing

The Foundation of Campus Data to Make Informed Decisions

David A. KadamusExecutive Chairman & Founder | Sightlines

The Challenges for Higher Ed Continue

Number of high school graduates are declining in many states.

External resources are in decline (state support, debt, donors).

As tuition growth outpaces inflation

the value of Higher Ed. Is questioned.

As buildings continue to age, the investment need will grow

3

1880

1885

1890

1895

1900

1905

1910

1915

1920

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

0%

2%

4%

6%

8%

10%

12%

Sightlines Database- Construction Age

% o

f C

on

str

uc

ted

Sp

ac

e

Understanding Campus Building Age Forecasts Capital NeedsP

re-W

ar Built before 1951

Durable construction

Older but typically lasts longer P

ost

-War

Built between 1951 and 1975

Lower-quality construction

Already needing more repairs and renovations

Mo

der

n Built between 1975 and 1990

Quick-flash construction

Low-quality building components

Co

mp

lex

Built in 1991 and newer

Technically complex spaces

Higher-quality, more expensive to maintain & repair

Pre-War Post-War Modern ComplexPercent of Total

Space 40%Percent of Total

Space 27%

The campus age drives the overall risk profile

4

1880

1885

1890

1895

1900

1905

1910

1915

1920

1925

1930

1935

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

0%

2%

4%

6%

8%

10%

12%

Sightlines Database- Construction Age Sightlines Database- Renovation Age

% o

f C

on

str

uc

ted

Sp

ac

e

Renovations Have Shifted the Capital PerspectiveP

re-W

ar Built before 1951

Durable construction

Older but typically lasts longer P

ost

-War

Built between 1951 and 1975

Lower-quality construction

Already needing more repairs and renovations

Mo

der

n Built between 1975 and 1990

Quick-flash construction

Low-quality building components

Co

mp

lex

Built in 1991 and newer

Technically complex spaces

Higher-quality, more expensive to maintain & repair

Pre-War Post-War Modern ComplexPercent of Total

Space 40%Percent of Total

Space 27%

The campus age drives the overall risk profile

1902 1908 1914 1920 1926 1932 1938 1944 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 2010 20150.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

The Campus Housing Construction Profile

Pre-War15.5%

Post-War48.0%

Modern13.7%

Complex23.4%

1902 1908 1914 1920 1926 1932 1938 1944 1950 1956 1962 1968 1974 1980 1986 1992 1998 2004 2010 20150.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Construction Age Renovation Age

Housing Has Not Seen Same Level of Renovations

Pre-War11.6%

Post-War42.0%

Modern13.9%

Complex32.3%

Pre War Post War Modern Complex0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

15.5%

48.0%

13.7%

23.4%

11.6%

42.0%

13.9%

32.3%

Constructed GSF Constructed + Reno GSF

What has Been Renovated?

> Campus housing is generally older than academic spaces.

> Campus housing has received less renovations.> The capital needs will be a growing pressure> Programmatically we suspect most campus

hosing needs to be modernized.> Most of the housing is paid for and represents a

significant asset for the campus.> Can these assets be monetized?

What Are the Issues?

1.Core Data2.Valuation3.Program Alignment4.Transparency5.Monitoring Plan

You Need the Facts

1. Core Data:>Building profile data – age, square footage, repair

history…

>Historical occupancy profiles, operating and capital costs

> Facility condition and capital investment needs

>Annual Stewardship investment requirement

2. Valuation>Most assets have limited market resale information,

therefore valuation is likely tied to future cash flow projections.

You Need the Facts

3. Program Alignment>Define how campus housing integrates with the

university mission, academic and residential objectives

>What is the impact of a change to other University Departments?

4. Transparency>Avoid the perception of “free capital”

>Constituencies will need to understand the financial terms, the reinvestment needs and the operating implications of the deal

> Impact on campus debt profile.

You Need the Facts

5. Monitoring The Plan> The program needs to be independently validated over

time to be assured that the use of the proceeds are consistent with the original plan

You Need the Facts

Discussion