MEDCO Finances, Develops Million Dollar Student Housing Projects for Morgan State University

Rendering of the Thurgood Marshall and Legacy Halls on the Morgan State University campus. Photo Credit: Morgan State University

Founded in 1867, Morgan State University (MSU) is Maryland’s preeminent public urban research university. As one of the most diverse Historically Black Colleges and Universities (HBCU) in the nation, and the largest in Maryland, MSU’s 185-acre campus provides students a space to learn and thrive. The campus is considered a National Treasure under the National Trust for Historic Preservation. Bolstered by its renowned undergraduate and doctoral programs, the university has experienced a 30% increase in enrollment over the past decade (Fall 2013 to Fall 2023).

Led by a strategic goal to increase enrollment further, the university began looking for a funding partner to facilitate a considerable expansion of the school’s available student housing. The development initiative would create a welcoming environment for the new influx of students and enhance the school’s first-class amenities.

MEDCO had previously worked with MSU to develop the Morgan View off-campus apartment housing site in 2005. In 2019, MSU once again contacted MEDCO to finance and produce an on-site student residence and a modern-day student dining hall. 

John Genakos, MEDCO’s director of real estate development and construction, recalls, “They were projecting a pretty big boon in the next few years and were in dire need of an onsite location to accommodate students and anchor the southern campus.” MSU and MEDCO agreed that a former large athletic field on the campus was the best location for a new student housing facility.

During the initial conversations, MEDCO recommended a three-phase plan. The first phase addressed MSU’s immediate housing need through a 10-story, 670-bed student housing project and an adjoining 40,000-square-foot dining hall. The second phase would recoup recreational green space, and the third phase was an additional new housing space to support future growth.

WBAL-TV 11 Baltimore shared this story on the new Thurgood Marshall Hall in 2022. Video Credit: WBAL-TV 11 YouTube.

MEDCO issued limited obligation revenue bonds to provide capital financing for construction and obtained a ground lease for the site. Facing the distinctive challenge of Baltimore City’s underground aqueduct system, MEDCO proactively partnered with a team of specialists and advisors. This collaboration aimed to meticulously locate the aqueducts, ensuring the building’s weight and foundations would not impact the underground structures.

Phase One construction of Thurgood Marshall Hall (TMH) began in November 2020 and was MSU’s first new residential project in nearly 30 years. The building’s amenities include a wellness/counseling center, fitness rooms, study spaces and a convenience store to add further value to students.

While Phase One was underway, MSU discovered that their enrollment exceeded their initial projections. “We thought that MSU might return to MEDCO five years after the first phase to let us know they were ready for the next building,” Genakos notes. “In reality, their enrollment numbers demanded that Phase Three begin in tandem with Phase One.”

MEDCO swiftly began financing, designing, and developing the essential components for the 12-story, 604-bed building, named Legacy Hall, concurrently with TMH’s construction. Detailed coordination was required so that contractors could go directly from one project phase to another without demobilizing any working parts. 

In total, MEDCO financed nearly $200 million for the residential buildings. In August 2022, Thurgood Marshall Hall welcomed its first residents. Legacy Hall is set to be completed in the Fall of 2024.

“MEDCO will manage and operate the properties for 30 years in conjunction with staff and resident life. Students are unaware that a different entity owns the halls—they look and run like any other campus dormitory. That is part of the value that MEDCO offers to the partnership,” shares Genakos. Once MEDCO’s lease concludes, ownership will revert to Morgan State University. 

As of this publication, Morgan State University has reached record-breaking enrollment for the past three years. In the fall of 2023, 9,808 students enrolled at Morgan State University—putting the school close to surpassing its goal of 10,000 enrolled students by 2030.

“The five-year partnership between MEDCO and MSU is a springboard to further relationship. As MSU continues to expand its student body, MEDCO is happy to be a valued partner in advancing their housing and capital improvement,” Genakos concludes.