BIRMINGHAM, AL - To fill a void in the current market, Harrison Street Real Estate Capital and Capstone Development Partners are pleased to announce P3+, a new program for universities seeking cost-effective private sector financing and development assistance with their on-campus housing. Harrison Street is committing $375 Million to launch P3+ to support the initiative.
“We are excited to join with Capstone, one of the leading student housing developers in the U.S., 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,” says Brian Thompson Harrison Street’s Senior Vice President.
The joining of Capstone and Harrison Street to implement P3+ was a natural fit. Harrison Street 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. “Harrison Street has been a leading capital provider for off-campus student housing for more than 7 years, and this transition into on-campus investment fits seamlessly into our firm’s business plan,” continues Thompson.
According to Capstone Principal Bruce McKee, “Harrison Street and Capstone listened to our existing and potential university partners who shared with us their insights, perspectives, 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 investor and developer “skin 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 arrangement. The program will also provide flexibility for changes in housing operations and institutional leadership that are common in higher education.
"The key to any Public Private Partnership is to create ‘win-win’ structures. With Harrison Street’s substantial financial commitment to P3+ this program can provide monetary value for the university and intrinsically has our interests aligned and thus has us working hand-in-hand with universities toward the same development objectives." says Mike Mouron, founder and Chairman of Capstone Development Partners.
Source: Harrison Street Real Estate Capital / #Student #Housing