2020 University Enrollment to Expand by 1.5M Students
The National Center for Educational Statistics data projects the student population will reach 23 million by 2020, and the population between the ages of 18 and 24 is projected to continue increasing through 2050.
SEATTLE—From 1980 to 2012, the number of university-enrolled students grew from 12.1 million to 21.5 million, according to the National Center for Educational Statistics data. The center projects the student population will reach 23 million by 2020, and the population between the ages of 18 and 24 is projected to continue rising through 2050.
In order to accommodate this rising demand, many universities and surrounding areas are planning or are in process with student housing developments. The University of Washington is no exception.
One development is getting closer to that realization, having just received construction financing. At build-out, The M in the University District will be a 24-story student housing property with a total of 230 units and 464 beds. The unit mix is made up of studios, one-, two-, three- and four-bedroom apartments. Located on a 0.38-acre parcel at 4700 Brooklyn Ave., the property also has approximately 4,350 square feet of ground-floor retail space.
CapitalSource, a division of Pacific Western Bank, provided a senior construction loan in the amount of $63.85 million to finance the development. In addition to the Capital Source loan, The M will be financed with a $27.5 million EB-5 mezzanine loan provided by CMB Regional Centers. The financing was arranged by Beverly Hills-based capital advisory firm Quantum Capital Partners.
“The M will be the first high-rise in Seattle’s University District in over 40 years,” commented Jason Baker, a managing director in the real estate group at CapitalSource. “The quality of the project and the views will be unlike anything else in the immediate area and students will love living here. We were honored to play a part in what will truly be a transformative project for the U District developed by Fields Holdings LLC, who we consider to be a top-flight student housing developer.”
The M will have active street-level retail, streetscaping, upscale finishes, front door security and amenities that include an indoor basketball court, theater, rooftop fitness center, study lounge, recreation lounge, fireplaces and grills.
The design features a tower on top of a 20-foot tall podium. The top floor of the tower will be designated towards the residential amenities and the roof deck will provide views of downtown Seattle, Mount Rainier, the University of Washington campus and the Puget Sound.
“The M is very well located in an area with a nearly perfect Walk Score of 97. It is conveniently located near the University of Washington campus, fraternity and sorority row, and surrounding neighborhood amenities,” Baker tells GlobeSt.com. “In addition, the property is a half block from The Ave, with its various restaurants and shopping options.”
A number of factors come into play in determining the size of the US student population and, therefore, the demand for student housing. Taken together, the net effect of factors determining student housing demand are forecast to yield continued growth in the number of university students, according to Byron Moger, executive director of Multifamily Advisory Group in Florida for Cushman & Wakefield.
Based on demographics, the economy and projected growth in the number of university students, demand for student housing is estimated to grow. And, the future performance of the student housing industry will very much depend on the supply/demand balance in each submarket, Moger says.