Cal State Fullerton sold its Irvine campus for $24.5 million in March, according to CoStar Realty Information, nearly eight years after the two buildings in the Banting Corporate Center were bought for $30.5 million.
The property was assessed in 2020 for $21 million, according to the Randy Hayer website.
CSUF’s Auxiliary Services Corporation, known as ASC, spent approximately $4.3 million on improvements for the two buildings, said Chuck Kissel, the corporation’s executive director.
Kissel could only speak on ASC’s spending on the building, but did not confirm the exact amount the university spent as a whole on Banting.
In 2018, an audit report sent to President Fram Virjee from Larry Mandel, vice chancellor and chief audit officer for the California State University system, had found that the construction had not met the CSU’s requirements.
The report stated that a board of trustees approval had not been obtained prior to construction, and key risk management issues, such as payment and performance bonds, appropriate insurance and contract indemnification clauses, had not always been addressed.
But the university faced some major problems during the ASC construction improvements to the property, including a seismic retrofit project that cost over $830,672, opposed to the proposed and accepted amount of $798,394.
Ellen Treanor, CSUF’s associate vice president for strategic communications, told the Daily Titan that due to a strict confidentiality agreement, she can’t reveal what they plan to do with the money from the sale or who the new tenants will be.
After buying the property for $30.5 million, investing at least $4.3 million in property, and selling the property for $24.5 million this year, CSUF’s capital loss is at least $10.3 million for the two Irvine buildings, without including other costs.
“Due to the size and cost of maintaining the Irvine Center, it has been challenging for the university to utilize the property to the fullest extent,” said the university in a statement sent out in January.
The statement also stated that the year the university purchased the two Banting buildings, Banting 1 was leased to offset cost. Because the university never established a need for the property, the lease of the building continued, most recently to Western Law School. All the while, Banting 3 served as home to CSUF Irvine Center.
The statement said that as the pandemic hit in 2020, Western Law School’s lease came to an end on the Banting 1 building. This left CSUF without a fitting tenant for the building, as well as no need to fill the space with their own staff and students due to the remote semesters. To avoid bond payments on the empty building, the university listed Banting 1 on the market and ended up with offers to sell both Banting 1 and Banting 3 as a whole.
“Its purpose has always been to extend the university’s mission of equity, access, and student success while supporting South County’s business, economic, and workforce development,” the university statement said.
CSUF decided to sell the property after receiving an offer on the two buildings, according to their frequently asked questions page.
“This review, combined with many other considerations, prompted the university to accept the best offer for the purchase of Banting 1 and Banting 3,” the university statement said.
The property was purchased by Telemetry Properties, which was created in December 2020, specifically to purchase that property. The actual buyer of the property was TGS Management, a private company, founded in 1989, that specializes in investing, quantitative finance, technology and software engineering.
CSUF classes have been provided at the Irvine campus since its lease in 2011.
The spring 2021 semester will be CSUF’s final semester at the Irvine campus and the university will completely vacate the property by July 1, 2021 and relocate all of their services and five full-time staff members to the main campus in Fullerton.
"sold" - Google News
May 10, 2021 at 02:00PM
https://ift.tt/3f4Cf6B
CSUF Irvine campus sold for $24.5 million | Campus News | dailytitan.com - The Daily Titan
"sold" - Google News
https://ift.tt/3d9iyrC
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "CSUF Irvine campus sold for $24.5 million | Campus News | dailytitan.com - The Daily Titan"
Post a Comment