Growing enrollment meant big changes for Morehouse College, an all-male Historically Black College and University (HBCU) in Atlanta.
One of those changes was a need for additional facilities – student housing, in particular.
Morehouse had the credit needed to initiate development of a new residential facility. But before breaking ground, the college had to overcome a lack of development experience. Morehouse was also reluctant to assume the development risk.
TUFF invested in Morehouse College, providing affordable capital and development expertise.
Morehouse approached TUFF, and TUFF responded with a comprehensive solution inclusive of financing. TUFF also provided the development expertise needed to deliver a built-to-suit housing facility for the college.
In alignment with its 501(c)(3) mission to advance education, TUFF provided access to $20.7 million in tax-exempt financing to construct the new residence hall. TUFF then ground-leased the land from Morehouse and agreed to convey the asset back to the college following retirement of the debt and fulfillment of the lease obligations.
Today, the Otis Moss, Jr. Residential Suites house Morehouse upperclassmen in apartment-style quarters. A two-building development, “Moss” contains study spaces, social lounges, and shared kitchens for residents.
After cutting the ribbon in front of the new residence hall, Morehouse could accommodate 375 additional students at its Downtown Atlanta campus.
Through a purchase option, Morehouse ultimately acquired the housing facility from TUFF.
One of TUFF’s charitable benefits is the opportunity of ownership. At the end of a master lease, TUFF often conveys a development to the benefitting institution. Many of those agreements also include a purchase option, and Morehouse College took advantage of theirs.
- 2.5-acre development site
- Two 3-story buildings
- 375 beds