With 5,000 New On-Campus Beds Planned, the UofU Breaks Ground on a $170 Million Residence Hall to Meet ~30% of the Eventual Buildout

Some 16-months-on, the University of Utah's multiyear, multiphase project with American Campus Communities has officially begun with the groundbreaking for the $170 million on-campus, six-story, 1,450-bed residence hall.

When housing construction at the UofU is completed, ACC will have built multiple dormitories at the University of Utah, adding ~5,000 new on-campus rooms to help the UofU transition away from a "commuter school" approach to a more traditional model with all first-year students living on campus.

This new model is what UofU President Taylor Randall, Ph.D. says is designed to create “college town magic” at the University.

Some 16 months after announcing its multi-year agreement with Austin, Texas-based American Campus Communities, the University of Utah and ACC have finally broken ground on the first of several projects designed to bring ~5,000 new on-campus residential beds to the UofU in the next five-to-ten years.

Specifically, several UofU leaders have now officially turned the first shovels of dirt on the estimated $170 million on-campus, six-story, 1,450-room dormitory that is slated for occupancy in Fall 2026, with

• An estimated $155 million slated to be spent by ACC, and
• An expected $15 million in additional monies to be spent on the project by the UofU, including ~$3 million for the 2.9-acre site itself.

As noted in last week's UofU announcement about the groundbreaking, ACC "... will construct and manage the facility under a 55-year renewable ground lease, with the land and buildings ultimately belonging to the university."

ACC is the nation’s largest developer, owner and manager of high-quality student housing communities.

Under its agreement with the UofU, ACC has also been granted two, 10-year options as the leaseholder on the new on-campus property, extending ACC's potential holding to up to 75 years.

ACC is responsible for all of the funding for the design, construction, management and maintenance of this new residential hall that's being constructed just south of the University's Kahlert Village as part of what's described as a Public-Private Partnership.

Property rents will be collected by ACC, allowing it to cover its costs and generate profits as well, while also dramatically lowering the costs for the residential hall to the University and the citizens of the state too.

{NOTE: ACC is owned by Blackstone, a global private equity leader with over $152 billion in Assets Under Management (AUM).}

As noted in the online summary of the official Public-Private Partnership Report, the finished dormitory will consist of nearly 350,000-square-feet in a building sitting on a 2.9-acre site.

Salt Lake City-based MHTN Architects and Baltimore, Maryland-based Ayers Saint Gross Architects are the architects for the project, with Salt Lake City-based Okland Construction selected as the contractor.

Based upon calculations found within the P3 Report, ACC expects to spend roughly $107,000 for each "bed" in this new residential hall.

Readers should note that total costs for building 5,000 new on-campus dormitory "beds" at the UofU will likely exceed $535 million over the next decade.

Hence, if 5,000 new on-campus dormitory "beds" / rooms are added at the UofU during the coming decade, then it's reasonable to expect total costs for such an increase will likely exceed $535 million (based upon a price of $107,000/bed).

Additional Details about the UofU's New Residential Hall

This new 1,450-bed residence hall is the initial step in what UofU President Taylor Randall sees as the university transitioning away from its traditional role as a commuter school "... to a more traditional residential college campus over the next several years," an effort that will add ~5,000 on-campus rooms in the next decade.

This on-campus undertaking is part of what President Randall described in 2023 as creating “college town magic” at the University of Utah.

As noted in the Winter 2025 issue of University of Utah Magazine, the new residential property "... is designed for first- and second-year students. It will feature a mix of double and single rooms, as well as semi-suites and full suites."

According to James E. Wilhelm III, Chief Development Officer at ACC,

"This project demonstrates how public-private partnerships can create transformative housing solutions tailored to the needs of today’s students."

This newest on-campus facility "... will include indoor bouldering walls, an excursion planning area, an outdoor patio, lawn games and hammocks, ski and snowboard storage lockers, indoor bike parking and repair areas, and a fitness center."

Comprised of single- and double-rooms, as well as semi-suites and full suites, the new residential facility will also feature

• A café with 135 seats,
• A study, social and gaming lounge, and
• A bouldering gym, as well as
• Bike, ski, and snowboard storage and repair facilities on-site.

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Designer: MHTN Architects & Ayers Saint

Gross Architects
• Contractor: Okland Construction

See https://attheu.utah.edu/events/new-project-brings-expanded-student-housing-to-campus/

and

See https://magazine.utah.edu/issues/winter-2025/u-launches-innovative-housing/