Weekly Market Update
COLLABORATION BETWEEN UNIVERSITIES AND STARTUPS IS RESHAPING URBAN REAL ESTATE
Thursday, August 9, 2018
In recent years, as many universities have struggled to fund operations and research, some have formed partnerships with startups and tech firms to build STEM facilities, incubation hubs, innovation districts, and startup spaces, often in urban settings, in hopes of monetizing research. Examples of urban university expansion projects include the Cornell Tech campus on Manhattan's Roosevelt Island, Harvard University's Allston Yards, and Drexel University's Schuylkill Yards. These public-private partnerships have demonstrated universities' ability to lead urban development. While many cities work to lure tech companies, collaborations between universities and businesses may enable some cities to grow their local economies and tax bases sustainably by fostering innovation of their own.
In Other News
- The Scripps Howard Foundation will be awarding the University of Maryland and Arizona State University $3 million each to open investigative reporting centers. The "Howard Centers" will offer graduate-level programs meant to provide hands-on investigative journalism experience to students.
- The Department of Defense announced Defense Enterprise Science Initiative ("DESI") awards to five different university-industry teams. DESI is a pilot program that supports university-industry collaboration focused on developing defense capabilities.
- In a recent interview, FDIC Chairwoman Jelena McWilliams stated she will be reevaluating rules adopted after the 2008 financial crisis. More specifically, she hopes to loosen the bank-capital requirements and revamp the rules enforcing the 1977 Community Reinvestment Act.
- The recent claim that Harvard University discriminates against Asian American applicants in favor of legacies and athletes is not the first time Harvard has faced such accusations. After similar claims in 1990, the U.S. Department of Education's Office of Civil Rights issued a report clearing Harvard of illegal bias.
- This fall will mark the first academic year after Boston University's merger with Wheelock College. The presidents of the two institutions say that the merger is seen as successful largely due to Wheelock's early search for an academic partner in anticipation of a potential closure rather than waiting until closure was definite.
- The NCAA recently announced it will be enacting several significant new rules for Division I men's basketball, including holding school presidents and chancellors personally accountable for ensuring their athletic departments adhere to the new rules. The rules will go into effect retroactively, as of August 1st of this year.
Rating Agency Update
- Moody's affirmed University of Montana's Aa3 rating. The outlook is stable.
- Moody's and S&P assigned Aa3 and A+ rating, respectively to Boston University's Series CC Taxable Revenue Bonds. Moody's outlook is stable and S&P's outlook remains positive.
- Moody's affirmed Colby College's Aa2 rating. The outlook is stable.
- Moody's affirmed Marist College's A2 rating. The outlook is stable.
- Moody's affirmed the University of North Texas System's Aa2 rating. The outlook is stable.
- Moody's affirmed Connecticut College's A2 rating. The outlook is stable.
- Moody's affirmed Adams State University's A3 rating. The outlook remains negative.
- S&P affirmed the College of Creative Studies' BBB+ rating on its Series 2015 Revenue Bonds. The outlook is stable.
- S&P assigned BBB+ to Burrell College of Osteopathic Medicine LLC's Series 2018 Revenue Bonds. The outlook is stable.