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University Falls Into Sweetheart Deal

ORLANDO-Housing-strapped University of Central Florida is paying College Park Communities of Pennsylvania $150 million, or about $40,000 per bed for 3,756 beds in two off-campus apartment complexes. The seller is throwing in the 80-acre land itself gratis.

By Alex Finkelstein | Updated on August 09, 2000

With student housing demand far outstripping shelter supply, the 30-year-old, 40,000-student University of Central Florida is contracting to buy 3,756 units in two off-campus apartment complexes for $150 million, or about $40,000 per bed. The 80-acre site itself is being transferred free. The deal with College Park Communities of Pennsylvania closes in October.

College Park didn’t do badly on the deal itself. Orange County tax records show the developer bought the assets in 1998 and 1999 for $29,702 per bed. “A nice profit,” Smith Equities Corp. president Robert E. Smith tells GlobeSt.com.

The university is funding the transaction through the UCF Foundation and another non-profit corporation now being established. The non-profit entity will sell bonds that will be retired over 30 years with student rent revenue.

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