REAL ESTATE NEWS

Harrison Street Asset Management and The Michaels Organization have entered a public-private partnership (PPP) with the University of San Diego (USD) to develop Presidio Terrace Apartments, a $230 million, 321-unit, 700-bed on-campus housing community.

The deal represents the start of a new strategy for Harrison and the first-ever PPP agreement for USD. With this transaction, Harrison Street surpasses $6 billion in PPP assets under management, reinforcing its role as a leading provider of infrastructure solutions for higher education, healthcare and government institutions.

Presidio Terrace will sit between USD's academic core and nearby retail, offering purpose-built housing for upper-division, graduate and professional students who currently face limited access to modern, institutionally managed options.

Scheduled for completion in August 2029, the project is intended to enhance connectivity to USD's business, nursing, engineering and law schools while delivering high-quality residential amenities aligned with evolving student needs.

Jim Hennessy, Harrison Street's head of PPP business development, said in a release that the project demonstrates how public-private collaborations can help universities meet critical infrastructure demands while preserving capital and shifting operational responsibilities to experienced private partners.

The structure includes a 99-year ground lease with USD and a full real estate tax exemption as a university-affiliated facility. Michaels will serve as developer and operator, extending a long-standing relationship between the two firms.

Harrison Street is one of the nation's largest owners of on-campus housing and has built a significant PPP track record, completing 64 transactions and partnering with more than 20 universities, including Northwestern, Duke, Arizona State, the University of Kentucky and Missouri State.

More than 40% of its higher-education PPP pipeline involves institutions pursuing a second or third partnership with the firm.

USD's enrollment has grown 13.2% since 2020, intensifying demand for modern student housing. Beyond PPPs, Harrison Street is also a major investor in off-campus student housing globally, having deployed more than $24 billion across 432 properties totaling over 237,000 beds in North America and Europe.

The University of San Diego has experienced strong attraction in recent years, with total enrollment up 13.2% since 2020 and significant growth in applications.

Harrison Street commands its position as the largest private owner of off-campus student housing globally. The firm's alternative real assets strategy has invested over $24 billion across 432 student housing properties, representing more than 237,000 beds in North America and Europe, since its founding.

Source: GlobeSt/ALM