The demand for student housing in Canada's big cities, especially at the country's top universities, remains strong and represents a solid investment and development play, stakeholders in the industry say. 

That sentiment is represented in the recent completion of Encore, a 303-unit, 440-bed rental development designed for students and young professionals in Calgary's master-planned University District.

Located just west of the University of Calgary, the University District is a 200-acre residential and commercial neighbourhood that overlooks the Bow River and Rocky Mountains. It includes a phased mix of urban developments by a variety of builders.

Encore, which is now set to welcome residents, was financed and built in partnership by Harrison Street Asset Management, a global investment management firm, and Gracorp, the real estate development subsidiary of Calgary-based Graham Construction. 

Together, Gracorp and Harrison Street have now advanced nearly 1,000 residential units, either completed or currently under construction. 

A ‘large-scale, iconic’ student housing building

At 16 storeys, Encore is the tallest building in the University District, said Trevor Dickie, vice-president, real estate Alberta group with Gracorp, in an interview. "It's an iconic building,” he said, noting its large, ninth-floor patio, amenity rooms, gym and study lounge.

Constructed to Built Green Gold standards, Encore is designed to exceed the National Energy Code by more than 25 per cent, aiming to reduce energy use and emissions. 

Dickie told RENX the partnership with Harrison Street pairs Graham's full-service "dirt-to-doors” development and construction expertise with Harrison Street's focus on investing in alternative assets in Canada. 

District continues to take shape 

“Encore is a welcome addition to our thriving community,” said Jeff Harris, vice president of commercial real estate, University of Calgary Properties Group in a release. “Its location, steps from the University of Calgary’s main campus, Alberta Children’s Hospital, Central Commons Park, and Retail Main Street, makes it a highly desirable choice for residents. We look forward to building on our successful partnerships with Gracorp, Graham Construction, and Harrison Street as we continue shaping the future of University District.”

Dickie described Gracorp as an independent, merchant developer with experience across a mix of asset classes, including housing and medical buildings. "We're a developer for hire." 

The company is particularly interested currently in producing more student housing in Alberta, Saskatchewan and Manitoba, Dickie said. 

Harrison Street sees value in PBSA for top schools 

Harrison Street is a global alternative investment management firm focused on real estate, infrastructure and credit strategies, said Ariella Stober, director with the company, in an interview. Its Canadian branch is based in Toronto and launched about five years ago. 

"We typically don't invest in traditional real estate, like traditional rental housing, traditional office or industrial,” Stober said. "We focus on student housing, senior housing, data centres, medical office and life sciences properties. We believe these investments are more recession-resilient and driven by demographic trends." 

The Canadian government has reduced the amount of international students who will be permitted to study in Canada this year, compared to 2024.  

“We believe demand for student housing, however, remains strong overall in Canada despite that pull-back,” Stober said. “We have seen leading, globally-recognized schools and universities, like the University of Calgary, across Canada continue to attract students with strong enrollment, both from Canadians and students abroad. From our perspective, we're still . . . very optimistic and bullish on the future of student housing, because at the end of the day, students need a place to live.”

"Calgary is very attractive right now from a population growth perspective," she added. "Harrison Street was attracted to the long-term fundamentals in Calgary as well as the particular opportunity (at Encore)."

Stober said Harrison Street is currently involved in three projects in the University District with Gracorp. The first was an acquisition of a 288-unit project called The ARIA. Next was the recently completed Encore building, and work continues on a third project which is under development that is planned to add 322 rental homes to the district in 2027. 

To date, Harrison Street’s Canada Alternative Real Estate Fund has committed to investments valued at approximately CAD$1.7 billion since launching in 2021.