The University Edge project is located on East Exchange Street between Sumner and Allyn Streets, adjacent to the University of Akron. The development site included 15 parcels assembled and financed privately by the developer. The completed project consisted of two five story buildings; one with retail on the ground floor and the other with a community facility for tenants on the ground floor. Both have private housing units, 40 in the retail building and 108 in the second building, on floors 2-5.
DFA issued two series of bonds using two different financing structures for the benefit of the developer, University Square Investors II, LLC and the City of Akron. The first series of bonds totaling $3M were issued as conduit lease revenue bonds with the assistance of Huntington Bank. By ground leasing the project site to the DFA, who then leased the site back to the developer and entered into a Construction Agency Agreement, University Square Investors II, LLC was able to utilize the DFA’s Sales Tax Exemption on building materials.
For the second series of bonds DFA issued $6.645M of TIF bonds through the DFA Jobs and Investment Bond Fund program for infrastructure improvements servicing the two buildings. This debt instrument also provided the Sales Tax Exemption on all the building materials.
Project Cost: $47.599M
$30M – Conduit Lease Revenue Bonds purchased by Huntington Bank
$6.645M – DFA Jobs & Investment Bond Fund program-TIF (4.25% fixed rate fully amortizing debt)
$10.954M – Equity