AGB Institutional Strategies (AGBIS) announced today the launch of its Public-Private Partnerships (P3) Advisory Service. The P3 service is designed to align higher education institutions with private developers to design, build, and manage new or replacement residence halls and apartments, campus-based hotels, and related infrastructure on college and university campuses.
The new service is both tactical and strategic, designed to help colleges and universities unlock the value of their property and to allow for off-balance sheet transactions, according to Rick Beyer, managing principal for AGBIS.
“Our goal is to assist institutions in defining their campus-investment requirements to fulfill institutional mission and vision,” Beyer said. “We’re helping them establish long-term strategic partnerships with developers to promote transformative planning for new housing as well as situations where repair or replacement of outdated housing projects is required.”
The P3 Advisory Service is led by Jim Tucker, former senior vice president of administrative and business services at Drexel University and a known expert in the field of public-private partnerships. The P3 service will provide a step-by-step process to align institutional infrastructure needs with external investment resources.
"Many institutions are conserving their capital funds and debt capacity for academic facility requirements,” Tucker said. “A public-private partnership is a perfect way to address student housing and other infrastructure needs. Universities who take advantage of this platform can leverage the value of their property through ground-lease income and access to third-developer funds.
The typical engagement will have three phases and 12 stages and will range in duration from six to 12 months. The P3 service includes assistance in defining the scope of the student housing need, developing a request for proposals (RFP), recruiting developer bids, assisting in the selection of the best partner, and supporting contract negotiation.
"We are excited to bring this P3 service to AGB members to help fund auxiliary projects such as student housing, or a combination of academic and lodging infrastructure,” Beyer said. “With Jim Tucker’s experience as a national leader and advocate of higher education P3, this service will greatly assist our members with their long-term capital needs for infrastructure.”