JACKSON, Miss. (AP) — A unit of Jackson State University will borrow up to $10 million to buy a 444-bed apartment complex next to its campus.
The College Board voted Thursday to approve the borrowing. JSU says it will pay up to $9.2 million for the Palisades apartments, next to the southwest corner of its campus.
The university began leasing the complex this fall to accommodate increasing enrollment, paying up to $1.9 million for rent and repairs, but had planned to buy it all along.
The apartments are owned by Redus Mississippi LLC, a subsidiary of Wells Fargo & Co.
Wells Fargo took over the property after foreclosing on a previous owner in 2012. Hinds County tax records value the complex at $6.1 million.
The JSU Educational Building Corp. says it will borrow money for up to 30 years, paying back $540,000 a year on average by using rent payments.
The university will use remaining money to pay a projected $800,000 in borrowing costs. If JSU negotiates a lower price, remaining money would be used to make improvements.
JSU is renting a 240-bed motel near the Mississippi State Fairgrounds for the second year. The university is also planning a 628-bed housing complex, including a 650-seat dining hall and a conference center. JSU will retain that motel this year, and is pursuing plans to build a new 628-bed housing complex, a 650-seat dining hall and a conference center. That complex was projected to cost $47.3 million when the College Board approved it.
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