Penn State BOT committee recommends $2.85M purchase of downtown State College property
A committee for Penn State’s board of trustees has recommended the $2.85 million purchase of downtown property at the site of the former FedEx Office Print & Ship Center, a move one university official referred to Thursday as a “generational opportunity.”
The 0.26-acre property, which sits at the corner of North Atherton Street and College Avenue, doesn’t have a specific long-term intended purpose yet. But the acquisition is expected to be approved Friday by the full board of trustees, and officials were adamant the purchase was an important one.
“It really is a property that we need to control,” said Rob Fenza, a trustee who retired as the chief operating officer of a national real estate investment trust. “It’s a defensive play, and it also, I think, is a great opportunity for us to control that highly visible corner.”
In at least the short term, the property and accompanying 6,222-square-foot building could be used as office space, which would help reduce other university costs. Kurt Kissinger, associate vice president for finance and business, also pointed out the property would help form a “critical boundary” on the western edge of campus.
“The corner also plays an important role in the university’s long-range plans for eventual enhancements along North Atherton Street,” he added.
According to Kissinger, the $2.85 million figure came as a result of five months of “intense negotiations” with the California-based owners.
“We negotiated this price down very significantly,” he said. “There was other interest in this property and we felt that, not being able to secure this agreement that was mutually beneficial to both parties, we would lose this generational opportunity.”
The Committee on Finance, Business and Capital Planning unanimously approved the recommendation to purchase the property at 101 N. Atherton St. on Thursday morning. The board of trustees is scheduled to meet between 1 p.m. and 3 p.m. Friday, when the purchase is expected to be formally approved.
This story was originally published November 12, 2020 at 10:52 AM.
