Construction is underway on the University of Arizona’s $247 million Catalina residence hall in Tucson, a nine-story project that will add more than 1,300 student beds when it opens in fall 2028.
The project has changed significantly since its original proposal. The development team initially planned a 19-story residence hall with about 1,200 beds. The revised scheme cuts the building to nine stories while increasing capacity by roughly 100 beds.
The University of Arizona broke ground on the project July 14 at the northwest corner of East Speedway Boulevard and North Campbell Avenue. The site includes the former Palm Shadows Apartments property and adjacent university land.
Catalina project changes from 19 stories to nine
The redesign gives the university a larger residence hall without the height of the earlier proposal.
Building Design+Construction reported that the original 19-story concept was revised as construction costs increased. The new design also makes more efficient use of the roughly three-acre site.
The completed Catalina will provide suite-style student housing, a dining hall and spaces for student programming and support services.
The university expects the residence hall to support its policy requiring most first-year students to live on campus beginning with the fall 2026 semester. Students who live within 30 miles of campus and those who qualify for specific exceptions can receive exemptions.
University data also points to a retention advantage for students who live on campus. First-year students living on campus since 1988 recorded an average first-to-second-year retention rate of 81%, compared with 73% for students who lived off campus.
Tax-exempt financing backs the $247M development
The project uses a public-private partnership involving the university, Collegiate Housing Foundation and Mortenson.
CHF will own and operate the residence hall, while the University of Arizona provides the ground through a long-term arrangement. Mortenson Development is leading development, with Mortenson handling design and construction.
The project also has a financing figure that is higher than its reported development cost.
The Arizona Industrial Development Authority closed roughly $270 million in student housing revenue bond financing for the project in July, according to project participant JFN Mechanical. The reported development cost is about $247 million, with roughly $145 million attributed to direct construction costs.
The bonds are backed by residence-hall revenues rather than the university’s general debt capacity. That structure allows the project to proceed without placing the development’s debt directly on the university.
RBC Capital Markets served as underwriter for the tax-exempt financing. Mortenson helped structure the financing with CHF and RBC.
Mortenson leads construction toward 2028 opening
Mortenson acquired the project site three months earlier than originally planned, allowing demolition and site preparation to begin ahead of construction.
The development moved from its initial discussion to groundbreaking in about seven months, according to Mortenson.
Gensler is the project’s design architect and architect of record. The engineering team includes Suntec Concrete for structural engineering, Power Design for electrical and mechanical engineering, and JFN Mechanical for plumbing engineering.
The Catalina is expected to open for the fall 2028 semester.
For the University of Arizona, the project adds housing capacity at a time when the university is also planning changes to parts of its existing residential portfolio. The new building will therefore provide additional beds while replacing some aging housing capacity elsewhere on campus.
The University of Arizona is not alone in expanding on-campus housing to meet student demand. At Louisiana State University, a $200 million South Quad housing project is under active construction and will add 1,266 beds for first-year students. The two-building development is part of LSU’s broader housing expansion strategy and is scheduled to open in fall 2027.
The Catalina project at a glance
- Project: The Catalina residence hall
- Location: Tucson, Arizona
- Developer: Mortenson Development
- Developer/Builder: Mortenson
- Owner/Operator: Collegiate Housing Foundation
- University: University of Arizona
- Architect: Gensler
- Project cost: Approximately $247 million
- Bond financing: Approximately $270 million
- Direct construction cost: Approximately $145 million
- Height: Nine stories
- Capacity: More than 1,300 students
- Site: Approximately three acres
- Groundbreaking: July 14, 2026
- Expected completion: Fall 2028
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