Clemson University

Clemson,

Student Housing Program And Concept Development, Ownership Structure Analysis, Financial Analysis, And Residual Land Value Analysis

In 2009, developing one of Clemson’s most prized pieces of real estate, Douthit Hills, was a high priority. The university wanted any facility there to be a revenue-generating, inter-generational, 24/7 neighborhood, and hired B&D to help make this happen. This was to be Phase 1 of a strategy we set for the university in a 2008 Student Housing Master Plan. We presented the range of products that would be appropriate for the site and developed a financial pro forma for each concept. A phasing option was also presented that would maximize the project’s vitality in a challenging economic climate. It was determined that Phase 1 should include 856 beds and a campus bookstore. Then, in 2010, we were again retained to analyze further opportunities for the remainder of the Douthit Hills site. As a result of that study, we developed a residual land value analysis to determine each proposed asset’s financial contribution. We assembled data for both on- and off-campus businesses and evaluated all relevant data points. Finally, we refined our previous financial analysis and created budgets for each real estate product type incorporating both land purchase and construction costs. In the end, we presented multiple scenarios for the university to consider.