Birmingham, Ala. — Harrison Street commits $375 million to launch the private-sector financing service for universities.
Birmingham, Ala. — Harrison Street Real Estate Capital and Capstone Development Partners have partnered to launch a program called P3+ that will fund on-campus housing development projects.
Harrison Street is committing $375 million to launch P3+. The program will enable universities to update housing without incurring debt on their own balance sheets.
Harrison Street Senior Vice President Brian Thompson says this program will provide a well-balanced, long-term ownership structure that responds to housing needs and priorities on campuses.
"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," says Capstone Principal Bruce McKee.
"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 key to any public private partnership is to create 'win-win' structures," adds Mike Mouron, founder and chairman of Capstone Development Partners. "With Harrison Street's substantial financial commitment to P3+, this program can provide monetary value for the university, and it intrinsically has our interests aligned. Thus, we will be working hand-in-hand with universities toward the same development objectives."