For-Profit Law School May Secure Millions In Real Estate Deal
Charleston Law School may just secure its future in a new multi-million city land deal.
The for-profit law school could make millions from selling a downtown parking lot that was purchased nearly 13 years ago, The Post & Courier reports.
The city of Charleston originally bought the corner lot in 2005 for $1,170,500 and sold it to the law school for $875,000. According to The Post & Courier, the terms of the loan were generous with an interest-only at below-market interest rate, a minimal money down payment, and a balance deadline that wasn’t due for another decade.
Charleston Law And The City Could Make Millions
The law school is now listing the property for sale at $12.5 million, with a contract pending.
According to The Post & Courier, Charleston Law could be secure nearly $9 million for its share.
Since the law school has only paid $10,000 for the property, plus loan interest and property taxes since 2005, the city may also see a big paycheck coming in.
The city of Charleston’s outstanding loan of $865,000 to the law school would be repaid in addition to an extra $2 million.
“When they sell the property, we’ll have a nice little windfall,” Mayor John Tecklenburg tells The Post & Courier. “I think it will be a nice bump for the affordable housing initiative.”
Charleston Law originally purchased the land from the city with the intent to keep the law school on the peninsula.
Ed Bell, Charleston Law’s president and part-owenr, says the property isn’t large enough to develop into a law school building, but that the money earned from selling will be used to find a different site on the peninsula.
“We have to have a place that we own, in order to control our costs,” Bell tells The Post & Courier. “I have personally assured the mayor that we will stay on the peninsula.”
Charleston Law has previously been ranked as a law school that admits students poised to fail bar.
Sources: The Post & Courier, Tipping The Scales
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