Academy of Art Leased Dorms to Startup Hostel

The Residency converted three former university dormitories into live-work spaces for tech founders.

Updated on Oct. 14, 2026 in Remote Work

Academy of Art Leased Dorms to Startup Hostel

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The Academy of Art University has leased three of its former dormitory buildings to The Residency, an organization that hosts cohorts of startup founders and researchers. These facilities at 1916 Octavia Street, 2209 Van Ness Avenue, and 1153 Bush Street were converted into live-work studios and robotics workspaces.

Why it matters

The shift highlights a broader effort by the Academy of Art University to downsize its extensive San Francisco real estate portfolio. By leasing these properties, the university continues to consolidate its assets while repurposing buildings that were previously restricted by historical housing litigation.

Residency participants pay $2,000 per month or exchange company equity to join one of three annual cohorts. The university recently sold three properties for a total of $38 million as part of its divestment strategy.

The players

Academy of Art University

This private art school has been a major San Francisco property owner and was subject to a landmark 2016 housing settlement.

The Residency

This organization operates startup hostels that provide live-work environments for founders and researchers.

The details

The Residency provides space for approximately 20 founders and academics at each site to develop startups during three-month stints. These buildings now feature video studios and robotics workspaces that replaced the former dormitory amenities.

2016: San Francisco sued the Academy of Art University over housing issues.
2025: The university announced its intent to sell nearly a dozen properties.
2026: The university sold three properties including a Fisherman's Wharf building.
October 14, 2026: Report published regarding current university property leases.

Market Landscape

This move follows the university's obligation to resolve land-use constraints established by the 2016 Academy of Art University housing lawsuit settlement. The divestment reflects a wider trend of institutional downsizing within the local real estate sector.

Local residents may notice a transition in neighborhood activity as former dormitories are converted into high-intensity startup hubs. This repurposing shifts property usage from student housing to commercial research environments.

The takeaway

The transformation of former dormitory spaces into startup hostels demonstrates how academic institutions are pivoting away from legacy assets. Founders interested in these programs should evaluate the trade-off between monthly rent payments and equity contributions.