Averett 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 have agreed to execute a sale and lease-back of Averett’s North Campus athletic facilities which will provide the university with additional liquidity to support operations while ensuring a seamless experience for student-athletes and protecting local control of the facilities.
Under the terms of the agreement, DRF and RIFA will each own 50% of the property while Averett leases the facilities for its primary use. The agreement calls for Averett to pay annual lease fees and allows the university to repurchase the facilities at any time for the original sale price. Final legal documents related to the sale and leaseback were finalized and signed by all parties on Jan. 26.
A similar model has successfully served the Institute for Advanced Learning and Research, which leases its facilities from RIFA.
The agreement 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
- Providing Averett University, Southern Virginia’s only four-year higher education institution, with additional flexibility and continuity as it positions itself for long-term sustainability
- Keeping the North Campus property under local control rather than risk having it acquired by an out-of-town developer
- Creating more opportunities for community benefits connected to the North Campus
“This partnership is crucial for the long-term stability of Averett University. As the city’s only four-year college, Averett is richly embedded in the fabric of the region and is a key economic force in Southside Virginia. With this partnership, Averett will now be able to continue to grow and evolve into a university that better serves the community. Averett is becoming a new, more efficient and focused university that has always changed with the times and will provide wide-ranging benefits and advantages to the Dan River Region,” Averett University President Dr. Thomas H. Powell said.
“Averett University is a critical partner in the economic transformation of the Dan River Region. As the only four-year institution within Southern Virginia, we need them to be successful,” said Clark Casteel, President & CEO of Danville Regional Foundation. “Averett is training our future workforce and leadership that will continue this transformation for years to come and the support of everyone in the Dan River Region is critical to their success. We look forward to watching them make the most of this opportunity.”
“Averett has opened doors through all of Southern Virginia for generations of students, providing a quality education and boosting our economy,” said William “Vic” Ingram, Chair of the Danville-Pittsylvania County RIFA and Tunstall District Supervisor. “As the university and its leadership works to strengthen the institution for the future, our local community needs to lend a hand when we can. This partnership is an excellent opportunity to support Averett and provide even more opportunities for our neighbors as our region continues to grow by leaps and bounds.”
“Averett University is a key economic and educational asset for the City of Danville and the broader region,” said Sherman Saunders, Vice-Chair of the Danville-Pittsylvania County RIFA and Danville City Council Member. “This partnership will keep the North Campus under local control and help protect the hundreds of jobs and millions in economic activity associated with Averett as the university charts its new course.”
Details on the terms of the sale/lease-back are available at averett.edu/northcampussale.