Arboretum Apartments sold for $25.5 million
July 30, 2005
KALAMAZOO--Western Michigan University trustees, acting at their July 28 meeting, ratified both a purchase agreement and a ground lease to execute the sale of the Arboretum Apartments for $25.55 million to TSG Real Estate LLC of Chicago.
Closing for the sale is expected to take place in the coming weeks. Trustees authorized the sale of the property at its December 2004 meeting. The ground lease, which was part of the agreement, was structured to qualify the arrangement as a sale and to satisfy bonding requirements. Although the ground lease is for a term of 99 years, the University may transfer the land to TSG or its successor at the 10-year anniversary mark.
Because of the financing structure used to pay for the building of the apartment complex, the University must use the net sales proceeds to complete other capital projects within the next 24 months. University officials are in the final stages of determining which capital projects would be the best use of the Arboretum sales proceeds.
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