Pace University in expanding its campus in lower Manhattan.
The university plans to add student housing and a new performing arts building.
University President Stephen Friedman told the Wall Street Journal that while many view Pace as a commuter school, that is no longer the case.
He said as enrollment increases, more students want to live on campus.
Pace has signed a deal to develop a new 29-story dormitory on Beekman Street that will house about 600 students.
Development is slated to be completed in 2015.
A 24-story, 609-bed hall of residence and retail space on nearby Broadway is expected to be finished by early 2013.
The school has 13,500 students at it three campuses in Manhattan and two in Westchester County.