UA picks 2 firms for downtown housing
Becky Pallack Arizona Daily Star | Posted: Saturday, April 16, 2011 12:00 am
Plans for new student-apartment projects downtown were officially announced on Friday.
The University of Arizona is pursuing two public-private partnerships that would have around 1,000 students living on Fourth Avenue along the proposed streetcar line to open for the fall semester in 2013.
The private partners are local firm Peach Properties and Birmingham, Ala.-based Capstone Development Corp., which is working with Tucson developer Jim Campbell.
New student housing is much needed, UA President Robert Shelton said in the announcement with city officials, neighborhood representatives and university leaders.
The UA can't afford to build more dorms on campus. Instead, it will affiliate with the new projects through marketing and referrals.
"They're here on campus as freshmen, and when the time comes to think about 'where am I going to live next year,' we'll refer them to these projects," said Bob Smith, a UA planning official.
The UA's goal is to house all freshmen in dorms on campus, because research shows that has a positive impact on their academic performance, Smith said.
When the two new dorms under construction on Sixth Street open in the fall, the UA will be close to meeting that goal, he added. The UA will have about 7,500 beds on campus.
The streetcar is an important part of the UA's downtown expansion. Officials on Friday described students and faculty getting to and from the main campus to the downtown branch in a matter of minutes without driving and parking.
The streetcar line will tie together Tucson's "centers of energy," Mayor Bob Walkup said.
The influx of students to the downtown area will spur economic recovery through investment and jobs, Walkup said.
The new projects also relieve pressure from UA-area neighborhoods, which have been fighting so-called mini-dorm developments, city councilman Steve Kozachik said.
However, some owners of other student housing near campus are concerned about these new projects, as well as projects moving ahead without university affiliation, saying there isn't enough demand.
About 3,000 new beds will be opening up for students in the next two years, and without enough customers, the openings will lower occupancy rates for all student housing, said Dick DeNezza, owner of College Place, 1602 N. Oracle Road. His student-housing complex was fully occupied with more than 200 students at the start of this school year.
A UA study found demand for student housing in the university area exceeds supply by 2,500 to 5,000 beds.
Capstone Development Corp. and Jim Campbell
• Where: The former Greyhound property, next to the Rialto Theatre on East Congress Street and Fourth Avenue, and another site across Congress next to the railroad tracks
• Beds: 720, divided between two buildings
• Commercial space: 24,000 to 33,000 square feet
Peach Properties
• Where: On East Broadway between South Fourth and South Herbert avenues
• Beds: 320
• Commercial space: 18,000 square feet
Contact reporter Becky Pallack at bpallack@azstarnet.com or 807-8012.
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