DES MOINES, IA. Drake University has successfully completed a $36 million tax-exempt bond issue to finance the development of the 457-bed “Drake West Village” mixed-use project, which is now under construction with a scheduled opening for Fall 2008. The Scion Group served as the University’s development advisor, including directing a national selection process for a development partner and assisting in structuring of financing and negotiation of development terms. Scion also performed earlier feasibility analysis for the project.
The development consists of three buildings totaling 226,000 square feet and will provide housing for primarily upper-division undergraduates and graduates in the University’s pharmacy and law programs, as well as over 9,000 square feet of street-level retail suites. Des Moines-based developer Hubbell Realty was selected to lead the project.
The bond issue is non-recourse to the University and is backed by a letter of credit from Citigroup. The bonds were underwritten by George K. Baum & Company, whose Senior Vice President Kirsten Kraig noted that “Scion’s feasibility analysis was instrumental in achieving the most favorable financing terms.” Founded in 1881, Drake University is an independent, private institution enrolling approximately 3,150 full-time students at its Des Moines campus of over 150 acres.