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A historically Black university in North Carolina is the latest in a series of small schools to fall on hard times.
Amid Chapter 11 bankruptcy proceedings, St. Augustine's University is considering selling part of its 105-acre campus just outside of Downtown Raleigh. The university owes between $50M and $100M to creditors, ABC11 reported.
Its real estate holdings are valued at $200M and include the main campus near Downtown Raleigh and other parcels in Greensboro, North Carolina, Rome, Georgia, and Lawrenceville, Virginia, the Triangle Business Journal reported.
The main campus is encumbered by liens held by creditors, including the IRS.
The school previously served more than 920 students, according to its website. Students were forced to transfer out of the school after its accreditation expired May 15, and it now has no students enrolled, ABC11 reported.
Earlier this month, Self-Help Credit Union assumed $7M of the university's debt from Gothic Ventures. The credit union has supported other historically Black colleges and universities across the Southeast, including acting as a primary lender for Shaw University in Raleigh, the TBJ reported.
Before filing for bankruptcy, the school looked for ways to dig itself out of the financial hole it was in.
In 2023, St. Augustine's University partnered with Carter to develop a 320-unit apartment complex for $75M. Carter will ground-lease the property on the northwestern side of the university's campus.
In November 2024, the university struck a deal with athletic development firm 50 Plus 1 Sports for a $70M investment. The developer planned to pursue a long-term ground lease for a mixed-use redevelopment on the campus.
St. Augustine's is facing similar financial problems as other small colleges and universities across the country that are making painful cuts, merging or closing for good.
Nearly 300 colleges and universities closed between 2008 and 2023, with more than 400 other institutions expected to close over the next decade, according to Huron Consulting Group. The colleges that are facing financial uncertainty are leaving behind hundreds of acres of real estate that have the potential to be redeveloped.
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