Sacramento State University


Student Housing Development Advisory Services

University Enterprises, Inc. (UEI), a non-profit auxiliary organization of Sacramento State University, engaged Brailsford & Dunlavey to advise on the planning and development of a parcel of land on the edge of campus. The City of Sacramento sold the parcel of land to UEI under the condition that prior to any new development on the site, UEI would develop and locate replacement facilities for the two existing ballfields on the site elsewhere within the city.

B&D recognized that the University had a desire to dramatically improve its retention and graduation rates and a new housing development, in concert with the University’s existing housing, could enhance the student experience.

B&D completed a project definition effort which included a series of market and financial analyses. Demand for over 1,000 beds in upper division housing (apartments) was demonstrated, which aligned with the potential site’s capacity. Interest in this type of on-campus housing, an extension of the first- and second-year experience on the core of campus, was highly desired by students. Furthermore, the location of this site was closer than many other student-focused off-campus developments, creating a favorable competitive amenity for the future development.

The financial analyses included a value-for-money analysis related to the traditional System-wide Revenue Bond (SRB) structure of the CSU system and a potential public-private partnership (P3). This analysis demonstrated that while the SRB-financed project would provide a greater amount of initial returns to UEI, the impact on debt capacity and other qualifying factors such as the risk of developing alternative ballfields leaned toward favoring the P3 option. B&D and UEI are currently engaged with the University’s chancellor’s office seeking approvals for this preferred P3 development option.