E. Stuart James Grant North Campus Sale/Lease-Back Agreement

North CampusAverett University has entered a new partnership with the Danville Regional Foundation (DRF) and Danville-Pittsylvania Regional Industrial Facility Authority (RIFA) to provide the university with additional financial flexibility as it works to position itself for long-term success. The three partners intend to execute a sale and lease-back of Averett’s North Campus athletic facilities at 707 Mt. Cross Road which will result in DRF and RIFA each owning 50% of the property while Averett leases the facilities for its primary use. This is the same model that has successfully served the Institute for Advanced Learning and Research, which leases its facilities from RIFA.

This arrangement will benefit the region by:

  • Supporting a major economic asset that generates hundreds of jobs and millions of dollars in economic impact in a fiscally-responsible way that protects taxpayers.
  • Providing Averett University, Southern Virginia’s only four-year higher education institution, with additional flexibility as it positions itself for long-term sustainability.
  • Keeping the North Campus property under local control rather than having it acquired by an out-of-town developer.
  • Creating more opportunities for community benefits connected to the North Campus.

The sale/lease-back agreement includes the following key terms and provisions:

  • The sale includes the property and facilities of North Campus (707 Mt. Cross Road).
  • Purchasers: Danville-Pittsylvania Regional Industrial Facility Authority (50%) and Danville Regional Foundation (50%)
  • Assessed Value of North Campus: $20.15 million
  • Purchase Price of North Campus: $18.15 million paid over three years and split 50/50 between the purchasers
    • $6.75 million at close ($3.375 million per entity)
    • $6.75 million in year two ($3.375 million per entity)
    • $4.65 million in year three ($2.325 million per entity)
  • Averett Responsibilities: As the primary tenant, Averett will continue to have priority use of the property and will be responsible for paying rent, insurance, utilities and maintenance costs.
  • Buy-back Option: Averett may repurchase the property at any time for the original sale price of $18.15 million, or whatever purchase price has been disbursed up until that point.
  • Lease Terms: Fixed for first 10 years at 4.5% of moneys paid to that point. Maximum of $7.45 million over 10 years.
    • Closing to June 30, 2026—$303,750
    • July 1, 2026 to June 30, 2027—$607,500
    • July 1, 2027 to June 30, 2035—$816,750 annually
  • Regional Access: The University, DRF and RIFA will explore additional ways to utilize the property for the benefit of the region, which could include hosting sporting events, concerts and entertainment, or other community uses that do not conflict with Averett’s use of the facilities for its athletics teams and school functions.