The University of Arizona will oversee a $250 million project to build a new 19-story student dormitory on the northwest corner of Speedway and Campbell, working with a nonprofit organization that will finance, build, and operate the dorm.

The new residence hall will provide space for more than 1,200 students, plus a dining hall and amenities.

Mortenson Development is buying a 2.49-acre property, where the former Palm Shadows Apartments sit, from the land owner. The nonprofit Collegiate Housing Foundation (CHF) will, in turn, buy the land from Mortenson at fair market value and hand it to the UA contingent upon CHF’s closing on tax-exempt bond financing it will raise for the project.

The financing will be paid back over an approximate 40-year-term and funded by associated residence hall fees. Under a 50-year ground lease with the university, CHF will independently finance, develop, construct and operate the dorm. The UA will have no debt obligation.