Webster University

St. Louis,

Student Housing Financial Analysis

B&D was selected by Webster University in 2013 to develop a financial pro forma for a potential on-campus student housing project. We were tasked with defining the quantity and quality of the residential units and the overall building size. Our approach for completing this assignment included a review of all relevant documents, in particular the university’s housing master plan and market study. Following a tour of the campus and work sessions with senior administrators, we prepared a comprehensive development model that included a building program, capital budget, and an operating pro forma. This model allowed for testing of various program configurations, construction costs, capital costs, and annual debt service, and it was assembled to serve as a manual during both the planning and implementation of the contemplated project. Several strategies to improve cash flow in the project’s first few years also were created, and multiple project sites were analyzed. We presented two preliminary schemes for the purpose of financial feasibility testing: one comprising 300 beds and the other consisting of 216 beds. University officials favored the 300-bed scenario, for which overall project cost estimates were presented.