Represents UMaine’s First P3 and Builds on Radnor and Harrison Street’s Deep University Relationships and Commitment to Sustainable Development
September 15, 2022 (Philadelphia, PA) – Radnor Property Group (Radnor) is pleased to announce its first public-private partnership (P3) in New England at the University of Maine’s (UMaine) flagship Orono campus. Radnor has formed a joint venture with Harrison Street, one of the leading investment management firms exclusively focused on alternative real assets, to rehabilitate and expand two historic buildings centrally located on campus. The JV, which is structured as a P3 agreement, is the first P3 for the UMaine System and is fully contracted through a coterminous 99-year ground lease.
Built in 1888, Coburn Hall and Holmes Hall, which have been non-operational for the past 15 years, will be converted into a boutique, on-campus hotel with 95 hotel rooms and suites, and a bistro cafe. Located on the University Mall at the center of campus, the rehabilitation will provide UMaine with a high quality hospitality offering to support UMaine’s student recruitment, alumni outreach, athletic, and community collaboration needs.
The project is scheduled to commence construction in the fall of 2022 with a planned opening in early 2024. As part of the P3 partnership, the project will offer workforce development and internship programs in collaboration with regional tourism and hospitality programs to help prepare and develop young professionals in the industry. Maine is home to a thriving tourism industry in which one of six jobs in the state are part of tourism or hospitality.
“We are pleased to see the long-term partnership forged with Harrison Street and Radnor,” said Joanne Yestramski, University of Maine Vice President and Chief Business Officer. “Their investment to repurpose these historic assets with the intention of delivering high-quality hospitality stands to help UMaine continue to build upon the success and growth of our campus and community.”
The buildings are Certified Historic Structures, and the redevelopment plan will meet the National Park Service standards for rehabilitation. The property will be operated by Olympia Hotel Management, a leader in campus hospitality services in the US based in Portland, Maine, Olympia’s local market knowledge and with a national experience are an ideal fit for the project. Archetype Architects is designing the project and Wright-Ryan Construction will serve as construction manager.
Christopher Merrill, Harrison Street’s Co-founder, Chairman and Chief Executive Officer, stated, “This transaction draws on Harrison Street’s deep P3 experience and strong track record as a partner of choice to leading universities and development partners. The rehabilitation of Coburn Hall and Holmes Hall reflects Harrison Street’s commitment to sustainable and socially conscious development by repurposing existing buildings on-campus and partnering to support the community’s workforce and prepare young professionals entering Maine’s expansive tourism industry.”
Jim Hennessy, Managing Director, and Head of P3 Business Development at Harrison Street, said, “We are pleased to bring Harrison Street’s unique P3 platform to UMaine for the university’s first P3 project. We look forward to continuing our partnership with Radnor to deliver a much-needed high-quality hotel and extended stay accommodations on Maine’s flagship university campus that supports current and future students, alumni, and the Orono community.”
“As developers and owners of many higher education and historic revitalization projects throughout our 23-year history, this has been one of the most collaborative endeavors we have undertaken to date”, said David Yeager, CEO and Managing Partner of Radnor Property Group. “The tremendous efforts of UMaine, Harrison Street and our entire team over the past two years were essential to make this project a reality. We are delighted to form our first P3 in the State of Maine with such an incredible University and System, marking another successful joint venture with Harrison Street.”
Harrison Street is a market leading P3 investor having deployed $3.8 billion of private capital in partnerships serving education, healthcare, and government users. Harrison Street and Radnor have previously partnered on four joint venture investments, three of which are P3 projects, consisting of more than 1,300 beds. Harrison Street’s higher education P3 portfolio totals 24 colleges and universities complimenting its off-campus portfolio at over 108 universities.
About Radnor Property Group
Radnor Property Group is a leading, privately held real estate company specializing in the development of student housing, multifamily apartments, and mixed-use projects in growing and dynamic communities. Radnor’s on campus projects include redevelopment and new construction public-private-partnerships with higher education institutions. Founded in 1999, Radnor has actively developed, or advised on assets valued at approximately $3 billion. Radnor is headquartered in suburban Philadelphia with regional offices in Atlanta and Hanover, NH. For more information, visit www.radnorproperty.com.
About Harrison Street
Harrison Street is one of the leading investment management firms exclusively focused on alternative real assets. Since inception in 2005, the firm has created a series of differentiated investment solutions focused on demographic-driven, needs-based assets. The firm has invested across senior housing, student housing, healthcare delivery, life sciences and storage real estate as well as social and utility infrastructure. Headquartered in Chicago with offices in London, Toronto, San Francisco and Washington DC, the firm has more than 220-employees and approximately $50 billion in assets under management. Clients of the firm include a global institutional investor base domiciled in North America, Europe, Middle East, Asia and Latin America. Harrison Street was awarded Best Places to Work by Pensions & Investments for seven consecutive years (2014-2020) and was recognized by PERE as the 2021 Alternatives Investor of the Year, North America and 2020 Global Alternatives Investor of the Year. For more information, please visit www.harrisonst.com.
About the University of Maine
The University of Maine, founded in Orono in 1865, is the state’s land grant, sea grant and space grant university, with a regional campus at the University of Maine at Machias. UMaine is located on Marsh Island in the homeland of the Penobscot Nation. UMaine Machias is located in the homeland of the Passamaquoddy Nation. As Maine’s flagship public university, UMaine has a statewide mission of teaching, research and economic development, and community service. UMaine is the state’s public research university and a Carnegie R1 top-tier research institution. It attracts students from all 50 states and 81 countries. UMaine currently enrolls 11,989 undergraduate and graduate students, and UMaine Machias enrolls 747 undergraduates. Our students have opportunities to participate in groundbreaking research with world-class scholars. UMaine offers more than 100 degree programs through which students can earn master’s, doctoral or professional science master’s degrees, as well as graduate certificates. UMaine Machias offers 18 degree programs. The university promotes environmental stewardship, with substantial efforts campuswide to conserve energy, recycle and adhere to green building standards in new construction. For more information about UMaine and UMaine Machias, visit umaine.edu and machias.edu.
For Radnor Property Group
CEO & Managing Partner
For Harrison Street
Nathaniel Garnick/Grace Cartwright
Gasthalter & Co.
For the University of Maine
Senior Director of Public Relations