As Metropolitan State University of Denver prepares to break ground next month on its first on-campus student residence hall, the University has successfully sold $110 million in bonds to finance the building, along with renovations to the Auraria Event Center.
The projects promise to transform campus life and, thanks to the revenue-generating student-housing building, strengthen the University’s financial future.
Construction costs will fall outside of the University’s general operating budget, meaning operational funds used to pay for academic programs, salaries, student services and other administrative costs will not be impacted.
Instead, revenue from room and board will cover the cost of the debt and, over time, will generate a new income stream for the University.
“This is a strategic investment for the University and our students,” said Jim Carpenter, vice president for Administration and Finance and chief financial officer. “This won’t divert any of our current revenue or affect our operational budget. In fact, student housing will contribute revenue to our budget in the future.”
The 12-story residence hall, scheduled to open in 2027, will house 550 student beds on the upper 10 floors, with new food and retail options and MSU Denver’s Classroom to Career Hub occupying spaces on the first two floors.
By providing accessible on-campus housing for the first time in its history, MSU Denver will help students stay more engaged and connected to campus, University leaders said.
Although the University had initially requested approval to issue up to $135 million in bonds, the total needed was reduced by $25 million, in large part due to Advancement’s fundraising prowess and anticipated private donations that will help fund the project.
Investor demand for the bonds was high, Carpenter said, due to the University’s strong credit profile and healthy finances.
“Debt financing is a typical tool for mature organizations with strong financial operations, and MSU Denver has among the lowest debt levels per student of any university in Colorado,” Carpenter said. “We structure our debt repayment responsibly and, as we have done with past projects, will meet all of our obligations while continuing to invest in students.”
