Nick Rahaim September 9, 2016
A 55-percent return on investment after two years is a windfall most investors would find difficult to obtain. Yet, that’s likely what the for-profit housing developer AMCAL scored with its $68.5 million sale of the Promontory student housing development to CSU Monterey Bay.
The Promontory, a student housing development that includes 176 apartment and 579 beds at 440 8th St. on the northern edge of campus, has been hailed by the CSUMB administration as a model for future growth.
As the Weekly reported in a feature on the university’s draft master plan, private partnerships are how CSUMB hopes to bring much needed housing to the campus.
In 2014, Los Angeles-based AMCAL purchased the lot from the city of Marina for $1.9 million. The development first opened to students at the beginning of the 2015-16 school year. Rooms at the private development are slightly more than the average residence hall, $3,941 compared to $3,644.
The 55-percent return on investment is calculated based on the $44 million project costs given by the city of Marina. AMCAL declined to give the final construction costs, which may have exceeded that budget.