The University of Connecticut’s board of trustees has OK’d the school’s plans to lease part of a downtown Hartford office building and partner with a developer to convert it to dorms.

The school would partner with an affiliate of Shelbourne Global Solutions, which owns the 8-story building at 242 Trumbull St. a short walk from UConn’s Hartford campus, with the dorm rooms to be located in a shorter annex to the building at 64 Pratt St. on a popular nightlife street.

Shelbourne would be responsible for designing, building and financing the project. Delivery is projected for August 2026. The project would result in roughly 200 student beds, according to documents presented to the UConn trustees this week.

A term sheet presented to the trustees say UConn would lease 242 Trumbull St. for 20 years for $2.2 million per year, with a 2.75 percent automatic escalation built into the contract.

A significant number of the 1,250 undergraduates at UConn’s Hartford campus told school officials in a survey that they would be interested in university-provided housing in downtown Hartford because they live with their parents, according to the documents, but the units would have to be priced at or below $750 per month or $7,500 per academic year for them to be affordable, meaning the school would face a $1.5 million yearly operating deficit and would need to come up with subsidies. The term sheet allows UConn to sell naming rights to help close that gap.

According to the Hartford Business Journal, documents presented during a Capital Region Development Authority meeting this week show Shelbourne and joint venture partners Lexington Partners and Hartford-based LAZ Parking plan to use a $10 million first mortgage, a $10 million interim loan from the CRDA, $5 million in state grants awaiting approval and $3 million in developer equity to fund the project. It’s unclear if a lender has yet been found for the project. The CRDA approved its portion of the capital stack Wednesday.