Harrison Street Real Estate Capital and Capstone Development Partners recently announced P3+, a program for universities seeking cost-effective private sector finance and development assistance with their on-campus housing. Harrison Street announced it will invest $375 million to launch the P3+ initiative.
Brian Thompson, Harrison Street's senior vice president commented on the new initiative saying:
"We are excited to join Capstone, one of the leading student housing developers in the US to provide universities an ample source of private equity, development experience, and a well-balanced long-term ownership structure that responds to their campus housing needs and priorities. Harrison Street has been a leading capital provider for off-campus student housing for more than seven years, and this transition into on-campus investment fits seamlessly into our firm's business plan."
Harrison Street is investing $375 million in the launch of P3+. The company already has a series of private equity real estate investment funds that collectively own more than 28,000 off-campus student housing beds throughout the country.
Bruce McKee, Capstone Principal, said
"Harrison Street and Capstone listened to our existing and potential university partners who shared with us the insights, perspectives and, and their financial needs and constraints. In response, we have created P3+ which we believe to be a much improved private financing program that makes common sense, is fair to the University, and puts the investor and developers in in the game."
"P3+ will allow schools to keep their housing programs up-to-date without using their own resources while at the same time generating additional revenue for the school under a comparatively short ground lease agreement. The program will also provide flexibility for changes in housing operations and institutional leadership that are common in higher education."
Harrison Street Real Estate Capital is based in Chicago, Illinois. The real estate private equity firm was founded in 2005, and currently has approximately $5 billion in assets under management through private equity funds and public securities products. The firm currently owns more than 28,000 student housing beds on the half of its various private equity funds.
Capstone Development Partners is based in Birmingham, Alabama. Its principals have developed and/or operated over $3.5 billion in on-campus or near campus housing projects since 1986.