WILMINGTON — The UNC System Board of Governors approved UNCW’s plan to lease out Plato’s Lofts this summer at its Thursday meeting.
READ MORE: UNCW has more students than beds as fall semester approaches
In its statement to the board, UNCW says the acquisition is to “address growing demand for university managed housing.”
Plato’s Lofts is a 216-bed facility located at 4810 Randall Parkway, less than a mile from campus. The apartment complex, like several others near the university such as Wilshire Landing and Redpoint, are geared toward students.
The property is approximately 5.7 acres and includes 54 fully furnished, four bedroom/four-bathroom apartment units. Like other student housing, Plato’s Lofts rents by the room rather than for the entire unit.
Current pricing for one room starts at $760 a month, utilities included, which would put the yearly lease rate around $1.944 million with a 3% annual escalation rate.
It is unclear if UNCW will be paying this amount or what it will be charging students to live there; a lease agreement nor answers to Port City Daily’s questions were not provided by press. However, according to UNCW’s acquisition request, the lease term is for two years with three one-year options.
As stated during the board of governors meeting, the 216 rooms will just about cover the university’s housing shortfall.
In July 2023, Executive Director of Housing and Residence Life Kevin Meaney told the UNCW Board of Trustees his office received 5,294 housing contracts when there were only 5,049 beds available across UNCW’s housing options.
UNCW’s 2023 freshman class was the largest in the institution’s history with 2,370 students. Meaney said the extra 245 first-year students would be housed in the dorms’ common areas and office areas, where there’s space for three to four residents. Double and triple rooms have enough space to add an extra bed as well.
Freshman — and sophomores since 2021 — are required to reside on campus. UNCW completed four new dorms geared toward these students in 2021. Now that they’re full, the university is discussing building more residence halls, though that requires a long-range vision.
At the BOG’s budget and finance committee meeting on Wednesday, UNCW Chancellor Aswani Volety described the Plato’s Lofts lease as a short-term solution. The committee was charged with approving the lease before the board’s final vote.
“Our board of trustees really wanted to build a lot of residences on campus,” Volety said. “With the enrollment trends and the demographic shifts and all those things, I want to be a little careful about how many things I’ve built. But even if I were to build, it’s gonna take several years before I see these things.”
There were a few concerns from the board of governors. Committee member Harry Brown said he wanted more details on why the university was taking a business out of the private sector.
Katherine Lynn, vice president for Finance and Capital Planning for the UNC System, pointed out several UNC System universities have leases with off-campus housing communities. She said by acquiring the entire property, UNCW could ensure the residents were all students, whereas right now, the property is not exclusive.
“So by acquiring the whole entire complex, which is about the amount of their overflow demand, they would be able to ensure more security on the campus and prevent problems that may arise when you have a mix of students with non-student populations,” Lynn said.
But therein lies another unanswered question: What will happen to the current tenants, especially non-students? UNCW did not answer this question by press. Sources living in the complex say they have not been notified of the acquisition nor the status of their leases. The Plato’s Lofts website is still taking applications with leases starting in August.
The board’s vice chair, Wendy Murphy, asked about the pricing plan for the property, whether it will remain market-based or align with UNCW’s student housing. Lynn said the prices would be comparable to what students would pay on campus and elaborated that shuttles — operated through Wave Transit — already provide transportation to and from the university to Plato’s Lofts.
The board of governors approved the acquisition unanimously. UNCW spokesperson Krissy Vick told PCD the two parties are working on the details of the lease at this time.
Reach out to Brenna Flanagan at brenna@localdailymedia.com.
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