Saint Augustine University has reached an agreement for leasing its land. The university reached an agreement with 50 Plus 1 Sports in Coral Gables, Florida, to lease part of its campus for 99 years for a total of $70 million. 50 Plus 1 Sports Principal and Managing Partner Monti Valrie shared the details of the deal with Saint Augustine in a telephone call with the Charlotte Post.
“We are absolutely thrilled to come to Raleigh and partner with Saint Augustine’s University, local developers, and community leaders in this incredible city,” Valrie said. “This collaboration underscores our commitment to creating projects that resonate with the community, enhance local opportunities, and establish meaningful relationships within the business ecosystem.”
The university received a letter of intent from the Real Estate Foundation requesting $60 million be paid to Saint Augustine by December 31. The deal states that by June 1, 2025, 50 Plus 1 Sports will pay an additional $10 million. 50 Plus 1 Sports will also offer advice on how to negotiate settlements for the university’s numerous debts. By the end of the 2023–24 school year, Saint Augustine owed over $3 million to Alladin Foods, the university’s former food services vendor; over $2 million in Department of Education student refunds; and over $9 million to the Internal Revenue Service.
Saint Augustine has been experiencing financial difficulties for quite some time. The Southern Association of Colleges and Schools Commission on Colleges voted last December to remove Saint Augustine from membership due to its financial issues, following two years of warnings. The university’s accreditation to probation was reinstated for good reason in July after the SACSCOC arbitration committee overturned the decision that had been rejected during their appeal hearing in February. The board will vote on the next course of action for Saint Augustine this month, and a delegation from SACSCOC paid a follow-up visit to the school last month.
In preparation for its accreditation review, the university cut half of its employees last month. This included part-time and full-time non-faculty roles and some vacant positions.
“As stewards of this institution, our focus is on its long-term sustainability through shared governance,” said Hadley Evans Jr., vice-chairman of the Board of Trustees and chair of the Finance Committee, in a statement. “While we recognize the seriousness of these financial adjustments, these decisions are essential for safeguarding the future of St. Augustine’s University and the students we serve.”
Last week, $20 million was taken out of Saint Augustine’s high-interest loan with Gothic Ventures, which has a 26% interest rate, to make up for four missing pay periods.
50 Plus 1 Sports also will cover the prepayment premium and 50% of the university’s Gothic Ventures equity. The business will get 65 percent of any profits made from Saint Augustine’s leased land for the first 15 years of the contract.
