Harrison Street Asset Management and The Michaels Organization have entered into a public-private partnership with the University of San Diego to deliver Presidio Terrace Apartments, a new on-campus student housing project. The development is planned as a $230 million, 321-unit community with 700 beds, designed to expand the university’s residential capacity for students.
Presidio Terrace will rise on the University of San Diego campus, positioned between the institution’s academic core and an adjacent retail corridor. The housing is intended to serve upperclassmen, graduate students and professional students, adding another purpose-built residential option to the university’s on-campus portfolio. Project completion is targeted for August 2029.
The initiative marks the first transaction executed through Harrison Street’s dedicated public-private partnership strategy and represents the University of San Diego’s first use of a PPP structure. The partnership is organized under a 99-year ground lease with the university, and the facility will benefit from a full real estate tax exemption as a university-affiliated property. The Michaels Organization will both develop and operate the project, building on its established relationship with Harrison Street.
Harrison Street executives describe Presidio Terrace as an example of how PPP structures can help universities address critical infrastructure requirements while preserving institutional capital. By shifting development and operational responsibilities to a private partner, universities can focus financial resources on academic priorities while still expanding campus facilities. The firm notes that PPP activity is increasing as more institutions explore these structures as a way to modernize and grow key assets.
Harrison Street is already one of the largest owners of on-campus housing in the United States and has an established track record in the public-private partnership arena. The firm has secured PPP relationships with more than 20 universities, including Northwestern University, Duquesne University, Duke University, Arizona State University, the University of Kentucky and Missouri State University. Across its platform, Harrison Street has completed 64 PPP transactions and reports that more than 40% of its higher education PPP pipeline involves follow-on projects with existing university partners.
Since its founding in 2005, Harrison Street has focused on innovation in real assets. In 2018, it launched a dedicated PPP business to help universities upgrade and expand essential infrastructure through structured partnerships. The company positions Presidio Terrace as a continuation of its broader strategy in the higher education sector, using private capital and operational expertise to support evolving enrollment patterns, campus needs and institutional priorities.
The University of San Diego has seen total enrollment grow 13.2% since 2020, accompanied by strong application trends. Harrison Street is active across the student housing sector beyond on-campus projects and is one of the largest private owners of off-campus student housing globally. Since inception, the firm’s alternative real assets strategy has invested more than $24 billion in 432 student housing properties, encompassing over 237,000 beds across North America and Europe.
