INDIANA, PA-Allen & O'Hara Development Co. LLC has begun construction of Phase I of a four-phase, $250-million student housing project at Indiana University of Pennsylvania. The full project calls for the replacement of approximately 3,500 beds of student housing on the 341-acre campus, which is about an hour's drive northeast of Pittsburgh. Allen & O'Hara is the development arm of the Memphis-based Education Realty Trust.

Phase I calls for construction of 734 beds in single- and double-occupancy suites in two buildings. They are expected to be managed by the university and are scheduled to open in August 2007. The project architect is the Pittsburgh-based WTW Architects, and Massaro Corp., also based in Pittsburgh, is general contractor.

A $52-million bond issue, completed on May 16, cleared the way for groundbreaking of the opening phase. The Pennsylvania Higher Education Facilities Authority issued the bond, and the Memphis-based Morgan Keegan & Co. Inc., which is a subsidiary of Regions Financial Corp., was the underwriter. The borrower is the Foundation for Indiana University of Pennsylvania, a nonprofit, tax-exempt organization.

The foundation selected Allen & O'Hara and has also authorized the developer to move ahead with phase two. It will encompass 1,000 beds and is set to break ground in early 2007. William W. Harris, president of Allen & O'Hara, tells GlobeSt.com this is "the largest privatized housing replacement plan in the country." It is the ninth project awarded to EDR affiliates at schools within the Pennsylvania State System of Higher Education. Under those contracts, Allen & O'Hara has completed 2,156 student-housing beds, has 2,481 more under construction, and another 2,050 are in planning stages.