Financially troubled HBCU strikes deal to lease property for $70M

ST. AUGUSTINE'S UNIVERSITY

St. Augustine’s University has reached an agreement with Coral Gables, Florida-based 50 Plus 1 Sports to lease part of its campus tor 99 years at $70 million.

RALEIGH – Saint Augustine's University has identified a price for leasing its land: $70 million.

The university's Real Estate Foundation is prepared to enter into a 99-year term agreement to lease property to 50 Plus 1 Sports, based in Coral Gables, Florida. 50 Plus 1 Sports Principal and Managing Partner Monti Valrie acknowledged by telephone that the company is in conversations with SAU.

“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.”

50 Plus 1 Sports, per its website, seeks to cultivate mixed-use sports venues by "providing 100% financing, insight, and expertise to drive long-term sustainable growth for both league owners and the diverse communities they represent."

The Real Estate Foundation issued a letter of intent to the university for $60 million to be paid to SAU by Dec. 31. Per the agreement, 50 Plus 1 Sports will pay an additional $10 million by June 1, 2025.

50 Plus 1 Sports also will provide consultation for negotiating settlements to the university's many debts. At the end of the 2023-24 academic year, SAU owed more than $9 million to the Internal Revenue Service, over $2 million in Department of Education student refunds and over $3 million to Alladin Foods, the university's former food services vendor.

Another $10 million was drawn on SAU's high-interest loan (26% interest rate) - worth up to $30 million - with Gothic Ventures last week to compensate employees for four missed pay periods.
50 Plus 1 Sports will assume responsibility for 50% of SAU's Gothic Ventures interest and prepayment premium. The company will receive 65% of any revenue generated by SAU's leased land for the agreement's first 15 years.

Text messages to SAU Interim President Marcus Burgess and SAU Associate Vice President for Global Marketing and Communications, Demarcus Williams, were not returned.

The university also announced last week that it was eliminating several positions in November, including 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 December, the Southern Association of Colleges and Schools Commission on Colleges voted to remove SAU from membership after two years of warnings because of its financial status. After being denied in their appeal hearing in February, the SACSCOC arbitration committee reversed the decision in July and reinstated SAU’s accreditation to probation for good cause. A team from SACSCOC visited the campus last month for a follow-up, and the board will vote on the next step regarding SAU in December.

SAU has reduced its expenses by approximately $17 million in fiscal year 2024 compared to 2023. Significant reductions, totaling 50% of the university’s employees, involved eliminating 67 staff positions (41% reduction), 37 full-time faculty positions (67% reduction), 32 adjunct faculty positions (57% reduction) and discontinuing several underenrolled programs.

Furthermore, the university is actively settling outstanding balances with vendors while adjusting various contracts.

Despite the obstacles, SAU reports sustained support from its alumni, with giving levels remaining consistent with the previous three years. The university has received over 700 enrollment applications for fall 2025, signaling strong interest in its academic offerings.

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