PSU will deconstruct two aging properties to make way for new student housing

PORTLAND, Ore. (KOIN) — Portland State University will deconstruct two of its downtown properties to make way for more modern student housing in the Park Blocks.

The public institution’s Board of Trustees approved plans for the construction project during a meeting on Friday. PSU is expected to begin developing the design for a new housing complex this fall.

The university revealed the complex will accommodate 550 students and offer private bathrooms, classroom space and study lounges. The complex, which will be six or seven stories high, will also hold a community kitchen and staff offices.

“We know that students who live on campus do better in the classroom and this beautiful new housing complex will provide Portland State students a modern and accessible option for on-campus housing,” PSU President Ann Cudd said in a statement. “As downtown Portland’s anchor institution, PSU is continually investing in our central city. We believe that new affordable downtown housing for students on our beloved Park Blocks will only add to Portland’s vibrancy.”

The new building will adjoin the lots currently holding the Montgomery and Blackstone residence halls. According to PSU, the properties are being deconstructed in fall 2026 because they “fall short of providing optimal living conditions for students.”

Originally built as a residential apartment complex in 1931, Blackstone Residence Hall was already slated to close after the current school year due to “ongoing problems” with the historic property.

The Montgomery building will remain open for another school year, although it was constructed earlier in 1917. It originally served as the Martha Washington Hotel for Working Women.

PSU plans to to begin constructing its new $85 million housing complex in winter 2027, using debt financing that will be repaid through building operations. The university said it will preserve as many materials from the older properties as possible.