SAN DIEGO — Harrison Street Asset Management and The Michaels Organization have announced a public-private partnership (PPP) agreement with the University of San Diego (USD) for the development of Presidio Terrace Apartments, a $230 million student housing project. Plans call for 700 beds across 321 units. The investment marks the university’s first-ever PPP agreement.
“Presidio Terrace is a strong example of how PPPs can help universities address critical infrastructure needs, creating a win-win situation for academic institutions, investors and college communities,” says Jim Hennessy, head of PPP business development at Harrison Street. “Today, we are seeing more PPP activity than ever before, as more universities recognize that these structures allow them to focus on their core academic mission while conserving capital and transferring operational responsibilities to a private partner.”
Located on campus between USD’s academic center and a nearby retail corridor, Presidio Terrace will be purpose-built for upperclassmen, graduate and professional students. Slated for completion in August 2029, the development will provide convenient access to USD’s business, nursing, engineering and law schools.
The project is structured through a 99-year ground lease with USD and will benefit from a full real estate tax exemption as a university-affiliated facility. Michaels will lead the development and operate the community upon completion.
Chicago-based Harrison Street, one of the largest owners of student housing, has completed 64 PPP transactions representing over $6 billion in assets under management. Since its inception in 2005, Harrison Street has invested more than $24 billion across 432 student housing properties, totaling more than 237,000 beds throughout North America and Europe. The global alternative investment management firm maintains $110 billion in assets under management across real estate, infrastructure and credit strategies.
Camden, N.J.-based Michaels is a residential real estate developer serving more than 200,000 residents in almost 600 communities across 39 states, Washington, D.C., and the U.S. Virgin Islands.
Total enrollment at USD has increased 13.2 percent since 2020. Fall 2025 enrollment at the Catholic university was 10,027 students, including 6,069 undergraduates.
— Kristin Harlow