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Howard University Announces Initial Closing of $500 Million Deal to Further Enhance Student Housing Experience

Transaction completion marks important milestone in the University’s continued efforts to improve student housing and strengthen Central Campus Master Plan objectives

College Hall North

WASHINGTON – Howard University has closed on a $316 million tax-exempt bond transaction that enhances the student experience, addresses critical housing facility needs, and assures student residential environments commensurate with top-ranked higher education institutions. 

This debt consolidation into a single financing represents the initial funding infusion of up to $500 million for a portfolio of student housing facilities  including the Howard Plaza Towers, Charles R. Drew Hall, George W. Cook Hall, Harriet Tubman Quadrangle, and The Axis at Howard. These efforts align with the Howard Forward Strategic Plan and the University’s Central Campus Master Plan. 

Simultaneously, Howard consolidated management of the entire housing portfolio under a first-class operator, Campus Apartments Management, LLC. This shift offers an improved and consistent student housing experience across campus while affording cost efficiencies through economies of scale. 

“This carefully structured transaction is yet another example of Howard’s efforts to deliver a best-in-class experience to attract and retain talented students,” said President Wayne A. I. Frederick. “By shifting to a more unified financing and operational model for the management of our residence halls, we are one step closer to fulfilling the goals of our Howard Forward Strategic Plan and our mission to provide the best possible environment for Howard students to learn. I am happy to partner, once again, with Provident Resources Group and Preston Hollow Community Capital in our pursuit of efficient financial investment and management options.” 

Since 2017, and prior to the current transaction, the University and Preston Hollow Community Capital (PHCC) have closed over $200 million in tax-exempt bond transactions for the construction and financing of several dormitories. The current arrangement offers more efficient capital with the potential for greater cashflow to the University in the future. 

Additionally, the University’s housing partner on this transaction is Provident Resources Group. Since 2013, Howard University and Provident have had a robust housing partnership with the development of the College Hall dormitories, which are aggregated in a separate financing package. 

“We’re proud to continue our partnership with Howard University, a top-ranked higher education institution that is one of the nation’s most highly regarded Historically Black Colleges and Universities,” said Ramiro Albarran, co-head of originations at Preston Hollow Community Capital. 

“This financial solution and capable ownership and operations team aligns with Provident’s and Howard University’s mutual commitment to providing high-quality educational opportunities by enhancing the affordable on-campus learning experience for current and prospective students,” said Steve Hicks, chairman of Provident Resources Group. 

Howard University has been a leading institution in leveraging its real estate assets to further plans in reinvestment. The University has an active commercial redevelopment program with over $828 million of projects in the development pipeline in the early stages of programming.  A new $650 million hospital is in the works for the University along with  plans for 2,000 new beds in its student housing inventory. Meanwhile, the current investment helps shore up the University’s existing housing portfolio. 

“Howard’s pursuit and investment in high-quality housing facilities in the last five years is second to none in the nation,” said Anthony Freeman, Howard University real estate executive. “I am proud to lead the conceptualization, strategy, development and closing of visionary financial transactions, like this one, that benefit the entire University community today and well into the future. Innovative structures empower the University to be more protective of its critical assets.” 

Additionally, Howard continues to value relationships with its minority-owned or led service provider teams. Loop Capital Markets LLC, a minority-owned firm, served as sole underwriter for the bonds. Orrick, Herrington & Sutcliffe LLP acted as bond counsel. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. was counsel to the underwriter. Lerch Early & Brewer, Chtd. served as real estate legal counsel to Howard University, and Hayat Brown, a woman and minority-owned firm, served as the University’s transaction advisor. 


Media Contact: Misha Cornelius; misha.cornelius@howard.edu

About Howard University 

Founded in 1867, Howard University is a private, research university that is comprised of 13 schools and colleges. Students pursue studies in more than 120 areas leading to undergraduate, graduate and professional degrees. The University operates with a commitment to Excellence in Truth and Service and has produced four Rhodes Scholars, 11 Truman Scholars, two Marshall Scholars, two Schwarzman Scholar, more than 70 Fulbright Scholars and 22 Pickering Fellows. Howard also produces more on-campus African-American Ph.D. recipients than any other university in the United States. For more information on Howard University, visit www.howard.edu.