Sundt’s work on a new student housing complex for the University of the Pacific is being performed using a unique funding method that brings together the public and private sectors.
The project is being developed by Capstone Development Partners, a private developer known for partnering with colleges and universities to develop student housing. Public-private partnerships (P3) are the type of work general contractors are increasingly pursuing.
P3 is a long-term partnership between a public agency and private entity. Through the arrangement, the private entity typically finances, designs, builds, operates and/or maintains a fee-producing public project. In exchange, the private entity is repaid over an extended period of time through fees generated by the project or as otherwise permitted. This can involve the private entity’s lease or ownership of the project for an extended period during repayment.
The recent emergence and high-profile successes of P3 delivery will continue to stimulate tremendous opportunities for the design and construction industry. In a landscape of intense budget constraints and fiscal austerity, P3s offer government agencies an alternative mechanism for financing vital infrastructure projects.
Expected to be complete by early 2018, the project in Stockton, California, includes development of two four-story buildings totaling 158,000 square feet and 381 beds. The residences will provide contemporary apartment-style housing with gathering spaces and other indoor and outdoor student amenities, including a large shared kitchen, community spaces and study areas to support students’ academic needs.