Harrison Street and residential developer The Michaels Organization have agreed a public-private partnership (PPP) with the University of San Diego (USD) to build a $230m (€199.3m) on-campus student housing project.
The deal, the first transaction completed through Harrison Street’s dedicated PPP strategy, will deliver the 321-unit purpose-built Presidio Terrace Apartments for upperclassmen and graduate students by August 2029.
The project is structured under a 99-year ground lease with USD, with existing Harrison Street partner Michaels Organization taking on development and operational responsibilities.
Jim Hennessy, head of PPP business development at Harrison Street, said: “Presidio Terrace is a strong example of how PPPs can help universities address critical infrastructure needs, creating a win-win situation for academic institutions, investors, and college communities.
“We are pleased to partner with the University of San Diego and Michaels to deliver high-quality housing tailored to the specific needs of the University’s students. Today, we are seeing more PPP activity than ever before, as more universities recognise that these structures allow them to focus on their core academic mission while conserving capital and transferring operational responsibilities to a private partner.”
Christopher Merrill, co-founder and global CEO of Harrison Street, said: “We’ve focused on real asset innovation since our founding in 2005. In 2018, we saw another pioneering opportunity to launch a PPP business to help universities modernise and expand essential infrastructure through well-structured public-private partnerships.
“Presidio Terrace reflects the continued evolution of our investment capabilities in the higher education sector and builds on Harrison Street’s long history of innovation and serving as a partner of choice for on-campus student housing and other mission-critical social infrastructure.”
To read the latest IPE Real Assets magazine click here.
