CAPSTONE DEVELOPMENT PARTNERS’ focus allows us, as compared to our broader-reaching competitors, to 1) better address specific needs and objectives of on-campus clients, 2) work more closely with university stakeholders and improve communication with our partners, and 3) provide a higher level of customer service throughout the development process, resulting in higher quality on-campus products and delighted university partners.
Capstone generally uses one word to describe our approach to projects that occur on or near the campus of a university partner: Collaboration. We encourage the active involvement of University stakeholders at every step in the process of design and predevelopment, as well as during construction. Each of our projects begins with intensive exploration regarding the current practices on campus as well as the goals and objectives of the University, both from a facilities perspective and from an academic/enrollment perspective. In the wise words of Stephen Covey, we subscribe to the philosophy “Seek First to Understand, Then to be Understood” in order to assure an alignment of interests and the achievement of important goals and objectives.
Capstone has earned a market reputation for being an innovator and creator of transaction structures and financing plans that have literally transformed the industry. With the recent economic shift and resultant confusion surrounding rating agency treatment of PPP projects on campus, Capstone has once again set out to craft a beneficial project structure that allows colleges and universities to determine what elements are the most important to them and then, with CDP, craft a privately owned, conventionally financed transaction that doesn’t require the institution to relinquish control of either the property (ground) or the operations for generations to come. We call this innovative approach P3+. P3+ allows the attributes that universities have typically found most important to be realized in a transaction while at the same time allowing for flexibility in the future, acknowledging that the situation on a campus today may be quite different than it will be in 20, 10 or even 5 years from now. In the crafting of P3+ we have focused on:
• Shortening the term of the transaction,
• Rating agency considerations / credit implication,
• Substantial equity participation (35-100%),
• Overall cost of capital at or below conventionally financed market rates,
• Operational / Management Flexibility, and
• Beneficial reversion / buy-out provisions.
P3+ promises to once again change the face of our industry for the better and any of the Capstone principals would be happy to sit down with you, understand your goals and objectives and discuss in detail how a P3+ transaction might benefit your campus or institution.