Ole Miss to use P3 approach to building new student housing

• Public and private student housing partnerships are common nationwide but are new to Mississippi.

Rising enrollment numbers at one of Mississippi’s oldest universities has prompted the institution to enter into a collaborative agreement with a private entity to develop, operate and maintain the construction of new student housing at its Oxford campus.

For the 2024 fall semester, the University of Mississippi’s seven campuses reported a total enrollment of 27,124 students, of which 5,973 were freshmen. The numbers indicated a spike of 11 percent from the prior year. A release from Ole Miss stated that was the largest freshman class in the history of the state.

To match the rising enrollment numbers, more student housing is necessary.

Last week, the Board of Trustees for the Mississippi Institutions of Higher Learning (IHL) approved a motion to take the next step in the construction of 2,700 beds on the Oxford campus. 

This project will be unique for Mississippi because it will be a P3 project, which are public and private partnerships that put some of the financial burden of the project on private developers. 

“This partnership allows us to meet growing demand for student housing in a way that’s both financially responsible and student-focused,” Ole Miss Vice Chancellor for Administration and Finance Steven Holley said in a statement. “A P3 approach also allows us to preserve university resources to invest in other priorities, such as new academic and research spaces that enrich the campus experience and strengthen our national reputation.”

The University states that this method will keep costs low and complete the construction phase faster. Ole Miss noted that while utilizing a P3 approach for student housing in Mississippi is new, they are commonly employed by other institutions across the nation.

The new housing will be located at two sites – the site of the former Kincannon Hall and a site located across from the law school located on West Row. On the site of the old Kincannon Hall, a facility with 1,200 beds will be constructed. The site on West Row will be home to the remaining 1,500 beds.

The project includes the construction of new parking garages at both locations, while West Row will also get a new 20,000-square-foot dining facility.

Completion of the project, and subsequently the grand opening, is anticipated for 2027.

Construction of the new housing facilities will utilize modern, modular construction techniques, by Greystar’s business Modern Living Solutions.

“At the heart of our mission lies our unwavering commitment to giving students the best experience possible, which is why this project is vital to addressing one of the most important aspects of the student experience: housing,” Chancellor Glenn Boyce said. “This transformative partnership with Greystar will provide a unique and exceptionally efficient approach to expanding housing options on campus.”

Even though modular construction techniques will be used, the university states more than 70 percent of construction work will be available for regional and local subcontractors to conduct on-site.

The IHL Board’s approval allows Ole Miss to enter into a pre-contractual agreement with GS Development Services Central LLC, also known as Greystar. Under the agreement, the company will provide a feasibility assessment, environmental testing, title review, survey review, site testing and preparation, infrastructure design and installation, design drawings and specifications, contract budgeting, and consultant work for planning, design, engineering and construction, Senior Associate Commissioner for Finance Dr. John Pearce described to the Board.

The contract will end when a future ground lease is established or by December 31, 2026, whichever comes first. 

“UM’s maximum financial exposure in case of termination for this agreement is $13.4 million, based upon an escalating schedule of cost incurred for due diligence during the pre-development phase,” Pearce described.

UM’s Request for Proposal process for this project initially garnered six proposals, according to the IHL’s Board book for the June 30 meeting. Those six were culled down to three by a representative committee. Greystar was ultimately awarded the contract due to having the lowest total project cost and for “other advantages.”  

IHL Board of Trustees member Charlie Stephenson said he and other members of the Board and representatives of Ole Miss were impressed when they toured Greystar’s facility.

“Several of us flew up to Pennsylvania to look at the facility where they’re building this equipment,” Stephenson explained. “I was impressed with the quality of the construction and the quality control they have within the facility. I think like any facility when it’s time to pick the fixtures and such, that’s something that should be reviewed carefully for long term maintenance. But I think it’s a quality product and (it will be) interesting to see how this progresses.”