Levine is currently overseeing the final touches on a 22-story,75,000-sf building that will house 360 students from New York'sSchool of Visual Arts. When it opens in January, the $30-milliondorm will be one of the nation's most technologically sophisticatedstudent-housing facilities. Unlike the Spartan cells of dorms past,the SVA building has a gym, lounge, laundry, T1 lines, network andcable connections, an internal phone system and 24-hoursecurity.

Construction costs for dorm housing are calculated by occupant,or "pillow," rather than by the unit, as in other types ofresidential buildings, Levine says. "Typically, if you were to havetwo students in the equivalent of what would otherwise be aone-bedroom unit with 650 sf divided into two living areas, you'rethen talking about 325 net sf per student. That's about 375 to 400gross sf per student. At today's costs of approximately $200 persf, once you add in ancillary costs, you're looking at close to$400 per gross sf total development cost."

Rents for student housing "are very similar to that of ordinaryresidential rentals," Levine says. He adds, though, that theenhanced credit of a major educational institution can result inlower interest rates and construction costs, creating potentialsavings for students. "Universities are flexing their muscles inthat they are bulk buyers. They bring creditworthiness thatenhances the building's financial abilities. By virtue of theirbuying power, they are able to convey better bargains to students.And their goal is to find affordable housing and amenities for thestudent body."