In times of frequent budget cuts and lower admission rates, universities and colleges across the country are constantly looking toward alternative sources of revenue to continue providing high quality education to students.
Apart from tuition hikes and faculty layoffs, sale of real estate is another funding source that universities are tapping.
In one such move, St. John's University has sold its lower Manhattan campus to real estate firms Fisher Brothers and the Witkoff Group, after its building sustained damages from Superstorm Sandy and to overcome some of its financial burden.
President Donald J. Harrington said that the sale will introduce more capital and the proceeds will be invested in student financial aid, academic programs, endowments and facility improvements. The university offers nearly $200 million in financial aid annually.
The sale price has not yet been disclosed, but it is estimated to be more than $200 million.
The buyers plan to build a condo project at the site.
"It's a property that is situated in the very heart of one the most dynamic mixed-use neighborhoods in the world," Fisher said.
However, certain campus community members expressed discontent over the Manhattan campus sale.
"I was disappointed when I first found out. I think that having a building in Manhattan carries a lot of prestige with it, especially having such a prime location in the Financial District a block from the World Trade Center," John Kenny, president of the economics and finance society, said.
Another reason for the university's decision to list its Manhattan campus might be the $350,000 interest-free loan to Robert Wile, chief of staff to the president, suggest media reports.
This act caused outcry among the students who alleged that the misuse of funds should not have prompted the officials to sell their campus.
Hirst said that the officials will continue to maintain a Manhattan campus, but other probable location has not yet been determined. Meanwhile, the campus operations will continue, probably until mid-2014.
For the latter part of the last semester, around October, the university closed the campus and temporarily shifted its operations to the Queens's campus, which caused a lot of upheaval for students. Now, the students are facing another possible relocation.
Since the campus was established in June 2001, students have been compelled twice to shift to the Queens campus. The first move was due to the September 11 attacks, during which time the campus was closed until the spring semester, 2002.
