Proposed Student Housing Projects

Transcription

1 Student Housing Over the years, apartment demand from college students has contributed to the historic imbalance in the Chittenden County apartment market where demand typically exceeds supply. Neighborhoods close to the University of Vermont and Champlain College, particularly portions of Burlington s Hill Section, are in the greatest demand, and these areas command some of the highest rental rates in the county. The portion of the Hill Section that is most affected by student rental demand lies roughly between UVM to the east, downtown Burlington to the west, Champlain College to the south, and the streets immediately north of Pearl Street, to the north. This area is favored by students, as it is within walking distance of UVM / Champlain College and downtown Burlington and has a large number of rental properties. Because of continued strong demand for student housing in Burlington's Hill Section, rents for studentoriented apartments are among the highest in the area. Typical rents for student apartments in close proximity to UVM and downtown Burlington are around $650 to $700+ per bedroom, per month, plus utilities. This is for apartments with generally two to four bedrooms. The upper end of the price range is for apartments in above average condition and in close proximity to UVM. Many apartment owners and managers who are active in the student market report that while demand remains strong, financial pressures at home are causing a greater reluctance among parents to pay the high rental rates for student apartments. There are now more instances of students sharing bedrooms to reduce their housing costs. While rents continue to rise, there will likely be fewer at the upper end of the range in the future. We have also seen a movement of students into neighborhoods located farther from campus - areas of the Old North End, for instance, or in the lower blocks of King Street and Maple Street. These areas have numerous rental properties at typically lower rent than is available closer to campus. To take pressure off the local housing market and to enable more students to live on campus, 1,581 beds of student housing have been built over the past five years. This represents an increase in student housing of approximately 20%. These projects include 312 beds at Spinner Place in downtown Winooski which is occupied by Champlain College and UVM students (2006), 812 beds at University Heights by UVM (2006), 94 beds on Maple Street by Champlain College (2008), 163 beds on UVM s Trinity Campus (2009), 58 beds at Severance Corners in Colchester for the Albany College of Pharmacy (2009), 22 beds on Helena Drive in Williston for the Vermont Technical College (2009), and 120 beds on Quarry Hill Road in South Burlington leased by Champlain College (2010). The Severance Corners and Quarry Hill Road units (total of 178 units) are traditional apartment buildings that could also be positioned to the non student segment of the market. The balance of units are designed specifically for student housing. The effort continues to provide more student housing to the area, with almost 1,300 beds of student housing proposed for UVM, Champlain College, Burlington College, Albany College of Pharmacy, and Vermont Technical College. These projects are summarized in the following table. Student Housing Page 1

2 Proposed Student Housing Projects Location # Beds Status* Comments University of Vermont Redstone Campus 403 Pending Apartment style housing. Construction expected to begin spring 2011, with occupancy beginning academic year Will be owned and managed by a non-university related organization under a longterm ground lease with UVM. Champlain College Eagles Club site St. Paul Street Ethan Allen Club site College Street Res-Tri project, between Main & Maple Burlington College North Avenue Burlington 250 Pending 250 beds in apartment style units. Occupancy likely in 3-5 years. 250 Pending 250 beds in apartment style units. Occupancy likely in 3-5 years. 270 Pending Up to 270 beds in three on-campus buildings. Singles, doubles and suites. Occupancy of first 90 bed building likely in fall Pending Existing residence at the their new campus. Will likely be converted to student housing for the fall semester. Albany College of Pharmacy Severance Corners Colchester 52 Under construction 28 unit apartment building. Total of 52 beds. Available fall Vermont Technical College Helena Drive Taft Corners Williston Helena Drive Taft Corners Williston Total Proposed Beds 1, Under Construction The second floor of VTC s three story building is being converted to 22 beds of housing. The top floor of the building has already been converted to 22 beds of housing. There will be 44 beds total. 20 Planned Same building as above. This new housing will be located on the first floor. It will likely be created in about four years. * Planned projects are in the conceptual stage. Pending projects are in the permitting process. Approved projects have necessary state and local approvals to begin construction. Should all of the proposed student housing be constructed, the total number of beds available will increase by approximately 16%, and the ratio of student housing beds to enrollment will increase from 53% to roughly 56%. This clearly indicates that the rate of housing development will out pace the growth in student enrollment, which will take pressure off the local apartment market. Demographic trends have favored increased student enrollment over the past several years. However, the age cohort which includes students entering college over the next five years (15-19 year olds) is expected to shrink by 8.3%. This will slow the rate of student enrollment growth. Student enrollment is expected to grow by about 740 students, or just over 4%, over the next five years. Undergraduate and graduate enrollment at UVM (12,122 including medical students), Champlain College (2,000) and St. Michael s College (2,500) are expected to remain fairly stable during this period. Most of the enrollment growth in the county is Page 2 - Student Housing

3 expected at Burlington College, Albany College of Pharmacy in Colchester and at the Vermont Technical College in Williston. The table on the below summarizes planned enrollment growth at UVM, Champlain College, St. Michael s College, Burlington College, Albany College of Pharmacy, and Vermont Technical College. The enrollment growth is compared with planned construction of new student housing at these schools. The Community College of Vermont is not included in the table as a significant portion of the students are local and commute from home. Enrollment (Undergraduate & Graduate Students) Academic Year UVM (includes medical students) 12,122 12,122 12,122 12,122 12,122 12,122 Champlain College 2,000 2,000 2,000 2,000 2,000 2,000 St. Michael s College 2,500 2,500 2,500 2,500 2,500 2,500 Burlington College Albany College of Pharmacy Vermont Technical College (full time students) Total Enrollment 17,257 17,422 17,612 17,732 17,862 17,997 New Enrollment From Base Year Student Housing - Number of Beds UVM 5,707 5,707 6,110 6,110 6,110 6,110 Champlain College 1,220 1,170 1,260 1,350 1,440 1,690 St. Michael s College 2,000 2,000 2,000 2,000 2,000 2,000 Burlington College Albany College of Pharmacy Vermont Technical College Total Beds 9,089 9,134 9,627 9,717 9,827 10,077 Total Beds as a Percent of Total Enrollment 53% 52% 55% 55% 55% 56% New Beds From Base Year (cumulative) # Students Off-Campus (Total enrollment minus total beds) Change in Students Needing Off-Campus Housing (New enrollment minus new beds) Likely Off-Campus Apartment Demand (2 students per apartment) 8,168 8,288 7,985 8,015 8,035 7, (183) (153) (133) (248) 0 60 (92) (77) (67) (124) Student Housing Page 3

4 The table indicates the net change in students living off-campus as a result of trends in enrollment and student housing construction. We assume that the available student housing is fully occupied. Over the five year period ending in the academic year, enrollment is expected to increase by about 740 students, while student housing is expected to increase by 988 beds. This student housing growth will take pressure off demand for apartment rentals in the student dominated neighborhoods of Burlington. We estimate that demand will drop by about 124 apartments by 2016 (based on an average of two students per apartment). While this represents about 1% of Burlington s rental housing stock, it is about 3% of student apartments. Rental rates will likely soften somewhat and more apartments will be available to local renters. The following graph illustrates the projected annual change in the number of students needing off-campus housing at UVM, Champlain College, St. Michael s College, Burlington College, Vermont Technical College, and Albany College of Pharmacy. Enrollment growth and new apartment construction be roughly equivalent over the next academic year ( ). New housing construction will then out-pace the growth in enrollment through 2016, as is evidenced by the declining number of students needing off-campus housing. This new construction, coupled with nominal enrollment growth, will take pressure off the local apartment market. Under the premise that the typical student rental is a two bedroom apartment, the increase in student housing over the next five years is equivalent to reducing rental demand by about 124 two bedroom apartments. This will soften demand for off-campus student housing and help to alleviate the rental housing shortage in Burlington. It is important to note that living off campus is a lifestyle choice made by many students and will continue to have a strong appeal regardless of new on-campus housing. A summary of enrollment and housing trends at Chittenden County s higher education institutions follow. Institutions which have predominantly full time enrollment with students from outside the Burlington area are included. These are the institutions which have the greatest potential to influence the local housing market. Page 4 - Student Housing

5 University of Vermont The University of Vermont has a current enrollment of 12,122 students for academic year This includes 10,199 undergraduate students, 1,472 graduate students, and 451 medical students. There are no significant increases to enrollment planned over the next five years, through academic year Over this same five year period, housing available for UVM students is expected to increase by 403 beds, through the development of Redstone Lofts, a new student apartment complex which is to be located within the Redstone Campus and east of the athletic Patrick-Forbush-Gutterson complex. Redstone Lofts will be developed, owned and managed by Redstone Commercial Group under a long term ground lease. Redstone Lofts will provide 144 new apartments with a mix of studio, one, two, three and four bedroom units. It is expected that construction will commence spring 2011, with occupancy beginning academic year UVM currently provides 5,707 beds of housing in a variety of facilities, including 5,328 beds in residence halls on the UVM and Trinity campuses; 214 beds in the Redstone Apartments, an independently owned and managed complex located at the south end of UVM's Redstone Campus; 120 family apartments located at Fort Ethan Allen in the towns of Colchester and Essex; 5 graduate students housed at Centennial Court staff/faculty apartments located off East Avenue; and 40 beds at Spinner Place, a 312 bed student housing complex in Winooski which privately owned and managed. Spinner Place is also occupied by Champlain College students. UVM housing is available for about 56% of its undergraduate students, the population that has the most impact to community housing. With the development of the 403-bed Redstone Lofts student apartments, 60% of UVM undergraduate students will have housing available to them. Champlain College Champlain College plans to maintain enrollment of about 2,000 students for the foreseeable future. The college provides housing for approximately 1,220 students, or 61% of its total enrollment. This includes about 830 beds on campus, 120 beds in a recently built, 32 unit apartment building on Quarry Hill Road in South Burlington, and 272 beds which are leased by the College at Spinner Place in Winooski. Spinner Place is a 312 bed student housing complex which opened in The 40 remaining beds at Spinner Place are occupied by UVM students. The most recent addition to Champlain College housing is the apartment building on Quarry Hill Road which was constructed in 2010 and is leased by the college from John Larkin. After the spring semester (2010), Champlain College is required to vacate a former fraternity building on South Prospect Street, which will result in a loss of 50 beds. The master plan at Champlain College calls for developing sufficient student housing to accommodate their entire student body. The college has an ambitious plan to meet that goal. Significant new student housing of nearly 800 beds is planned in four locations: 250± beds at the site of the former Eagles Club on the corner of Maple and St. Paul streets; 250± beds at the site of the Ethan Allen Club on College Street; and 270± beds in three buildings on campus between Maple and Main streets. The Eagles Club and Ethan Allen Club sites were bought by Champlain College in The Eagles Club building is being used as a homeless shelter on an interim basis. Champlain College plans to use the Ethan Allen Club property as a conference center, on an interim basis, as they work on planning and development of the site for student housing. The Eagles Club and Ethan Allen Club buildings will be demolished as part of the projects. The planned housing at the Eagles Club and Ethan Allen Club sites will be student apartments, however, the design will allow the apartments to be easily converted to market rate apartments should the college ever elect to reduce their student housing inventory. The planned on campus housing will include singles, doubles, and suites. The units will have a flexible design so they can be reconfigured as student needs dictate. For Student Housing Page 5

6 instance, two singles can be combined to create a double, and the suites can be modified as well. These three projects represent the potential for approximately 770 beds of student housing on campus and 500 off campus. The College Street and St. Paul Street sites are within walking distance of the college. The projects are in the permitting phase. Occupancy for the first on-campus residential building (90 beds) is expected in the fall of The remaining residential projects will likely be available for occupancy in three to five years. With these three projects, Champlain College will be near its goal of providing housing for all of its students. Looking forward, an additional residential complex may be added which would accommodate the students residing at Spinner Place and Quarry Hill. Champlain College is using these locations as a temporary measure until permanent student housing is constructed on or close to the campus. At this point, there are no specific plans to construct additional residential complexes and occupancy is expected to continue at Spinner Place and Quarry Hill for the foreseeable future. St. Michael s College St. Michael s College has a current enrollment of approximately 2,000 undergraduate students and approximately 500 graduate students. The most recent addition of student housing to the St. Michael s campus was 372 beds, in The college has a policy requiring undergraduate students to live on campus and nearly all do. The few that do not live on campus generally live nearby with their parents or relatives. St. Michael s has sufficient on-campus housing to accommodate all undergraduate students. The requirement to live on-campus is intended to enhance the sense of community among the students. Student housing includes a mix of single rooms, suites, and townhouses. The college plans to maintain undergraduate enrollment at about 2,000 for the foreseeable future. No additional on-campus housing is planned. Burlington College Burlington College recently acquired the former Burlington Catholic Diocese property at 351 North Avenue in Burlington. Their move, which will begin in earnest in June, represents a significant transformation for the college. Their current location at 95 North Avenue includes a 16,000 SF building on two acres. The new site has a 77,000 SF building on 34 acres which extend from North Avenue to Lake Champlain. The new location will allow improved classroom, conference and office space, much green space around the buildings - which their current site lacks, and the establishment of a food service - also lacking at their current site. The college will be fully operational at their new location by the beginning of the fall semester. Burlington College currently has an enrollment of 185 students. Enrollment in the fall is expected to grow to 200, with a roughly 20% increase each year thereafter. The goal is to grow enrollment to about 400 students. Housing is currently available for 24 students in four apartment buildings located near the college. A residence at the new location will allow campus housing to become available to about 45 students in the fall. The college intends to increase campus housing, possibly with the construction of a new residence hall, although there are no specific plans at this point. Albany College of Pharmacy and Health Sciences In the fall of 2009, the Albany College of Pharmacy and Health Sciences opened Vermont s first pharmacy school, in Colchester. The college is located in the former Bombardier building on Water Tower Hill. The college offers a four year Doctor of Pharmacy program. Current enrollment is about 150 students. Each graduating class will have about 75 students, so enrollment will reach about 300 students by academic year , and remain stable thereafter. Page 6 - Student Housing

7 Student housing is available at the Severance Corners residential and commercial complex in Colchester. Two 31 apartment buildings with a total of 116 beds are currently available for Albany College of Pharmacy students. The buildings were constructed over the past one to two years. A third apartment building with 28 units and 52 beds is under construction and will be ready for the fall semester. These buildings are available to all tenants - students and non-students alike. The college directs students needing housing to these properties. Most of the tenants are students, although non-students reside there as well. Severance Corners is about 1.5 miles north of the college on U.S. Route 7. Shuttle bus service is provided to and from the college. Vermont Technical College The Vermont Technical College has a satellite campus in the Taft Corners section of Williston. There are currently 300 full time students and 170 part time students at the Williston location. In the next five years, enrollment is expected to grow to about 700 full time students and 200 part time students. Although most full and part time students commute to the campus from home, the college has identified a need for student housing. In 2008, the college purchased a three story office building on Helena Drive which is adjacent to its primary building. The former office building was modified for use as classrooms, offices, and 22 beds of student housing. The student housing, which is located on the top floor, became available in the fall of The second floor in the building is currently being converted to another 22 beds of housing. This new housing will be available for the fall semester, bringing the total number of available beds of student housing to 44. The college has plans to convert the first floor of the building to another 20 beds of housing in about four years. To accommodate the planned enrollment growth, the college hopes to construct a new building and campus parking on a nearby vacant lot on Blair Park Road. The college is in negotiations to acquire the lot. If an agreement is not forthcoming, the college will turn its attention to identifying another nearby building site for acquisition. Student Housing Page 7