University Plaza under new ownership
University Plaza LLC, established by a subsidiary of the Binghamton University Foundation, will sell its interest in the not-for-profit student housing corporation to the Newman Development Group on Aug. 13.
The plaza, which offers housing to students at Binghamton University as well as to other area colleges, was owned by University Plaza LLC on land leased from Newman Development.
“Newman Development Group has established itself as a leader in student housing,” said University Plaza Executive Director Sheila Doyle. “With their plans to expand, it made perfect sense to sell the project and to play into that strength.”
The sale will allow University Plaza to extract the equity that has built up over the last 10 years, and it expects to net over $10 million from the sale. The subsidiary’s board of directors, in conjunction with University leadership, has elected to add the proceeds to the Binghamton University Foundation’s endowment in perpetuity and to provide the University with an annual payout for strategic initiatives.
Following the sale, University LLC and Newman Development Group will each communicate with tenants via certified mail to ensure a smooth transition for everyone.
The $12.2 million in net proceeds from the sale will be added to the Foundation’s endowment and will benefit the strategic initiatives of the campus.