An expanding population in California has made new student housing a necessity, prompting university systems to find innovative ways to build projects.
One solution gaining traction is Public-Private Partnerships (P3). A P3 is a long-term contract between a public-sector client and a private company or consortium covering the design, construction, maintenance and sometimes financing of a facility, such as our $25.8 million project constructing student housing at the University of the Pacific in Stockton. The project is a partnership between the university and Capstone Development Partners. In this case, the university is providing the financing.
Capstone, a Birmingham, Alabama company, has produced student housing for more than 25 years.
“The university systems in California are embracing the P3 model of project delivery to enable them to meet the housing demand of the student population,” said Sundt Senior Vice President and Building Group Manager Teri Jones. “This new approach will be good for the university systems, their students and the building industry.”
“P3s offer several different types of contract options for public entities with a wide range of risk allocations, funding arrangements and transparency requirements not available in traditional delivery methods,” said Sundt Project Manager Steven Bonicatto. “This approach offers useful tools for governments or private entities to achieve their objectives.”
Our team broke ground on the project last August. The new 158,000-square-foot development includes two new four-story buildings consisting of 142 studio, two-bedroom and four-bedroom units that will provide a 381-bed residential community. When complete early next year, the project will transition the approximately four-acre project site into student apartments including more than 15,000 square feet of indoor/outdoor amenities featuring social and study areas and other site improvements.