Newmark Grubb ACRES is pleased to announce the sale of 25 acres of land located at 1125 North University Avenue in Provo, Utah to Brigham Young University. The land is adjacent to BYU’s already existing campus.
NGA’s Account Executive of Global Corporate Services Nate Worthen and Senior Vice President of Investments Mark Jensen represented the private research university in this noteworthy transaction.
This deal is significant as it represents a substantial expansion opportunity for Brigham Young University to purchase hard-to-come-by in-fill parcels, while simultaneously allowing the school district to subsidize the construction of their new high school on the west side of Provo with the proceeds from this sale.
Provo City School District recently bonded for improvements to Provo High School, which is in desperate need of repairs. The problem was that the existing high school is located on 25 acres and new high schools in Utah are typically designed for 60 acre sites at a minimum. This meant a very constricted site plan and little or no room for staging the construction for the needed renovations. The school district owns a 45-acre site on the west side of Provo where much of Provo's growth has and will continue to happen, but the cost of construction on the new site exceeded the amount the district had bonded for. However, with the proceeds from the sale of the existing high school, the district will be able to subsidize the construction of a completely new high school and build on an expanded site. With creative advice from the brokers involved, BYU proposed a sale-leaseback with free rent for a period of thirty months allowing the school district to immediately apply the proceeds of the sale to the new project while maintaining their occupancy at the existing high school for no additional cost. This time period also allows BYU time to decide how they will maximize their future utility of the site and go through their own design process. All in all, the transaction was an example of multiple parties coming together in creative ways to meet the needs of each.
Regarding the transaction, Worthen commented, “Out of the 200+ transactions I have been a part of, this represents one of the transactions I am most proud of and brings me the most personal satisfaction. Appropriately presented, creative solutions are one of the biggest values a professional real estate broker can bring to any given transaction.”