[co-author: Skye Jackson]*

In periods characterized by economic uncertainty or instability, it isn’t uncommon for public projects to quickly lose or divert essential funding for development or improvements in infrastructure. Many times, public works like roads, public transportation systems, or schools are unable to fund developments enabling them to remain competitive or even efficient. In a previous blog post, we discussed the benefit of a broad understanding of how P3s can be used for social good, especially for projects desired by institutions of higher education. Since the conception of P3s, colleges and universities have seen the benefits of P3s, especially in a market where high interest rates present financing burdens to public entities. While some governments have grappled with when and whether to use the P3 delivery structure, colleges and universities have taken the model and run with it, especially to provide much-needed quality student housing.

While there are many benefits to implementing P3s in public higher education, one of the most prominent benefits resides in the ability of private developers to manage development projects more efficiently, often rendering faster turnarounds at lower costs. P3s are, thus, an especially beneficial practice in projects like student housing developments where efficiency is essential. Indeed, the consistent, national trend towards P3s in student housing has not been without good reason. Previously we’ve discussed some of the benefits specific to the use of P3s in developing student housing for higher education: P3s often result in a higher quality housing product, they transfer the risks of development and investment to the private sector, and they enable educational institutions to preserve more of their funding for educational projects and academic resources.

Despite nationwide increases, not only in freshman student admission, but also in off-campus living expenses, public funding for student housing has dwindled, making P3s even more attractive to colleges and universities. The most recent student housing P3s include recent P3 projects at Florida Polytechnic University, the University of Hawaii, and Appalachian State University. At Florida Polytechnic, the university is partnering with Design Collective to design, and Clancy & Theys to build, a $42 million residence building – the first, actually, of the University’s student housing that it will own after handback. The University of Hawaii has seen immense success in previous P3 projects at its Manoa campus, and most recently it will be pursuing its second partnership with Greystar Real Estate Partners to develop a $156.9 million state of the art housing complex including a child-care facility and high-tech classrooms, among other amenities. Finally, Appalachian State University just entered into a contract with RISE to design and construct six dorm buildings in a project valued at $191 million. This project enabled the University to not only update existing student housing, but also add 500 beds and expand student parking in a cost efficient way.

*Summer Associate