Penn State purchases lease property, saves future dollars

 

HERSHEY, Pa. -- A property leased by the University Libraries for the past five years in Ferguson Township will soon belong to Penn State.

Today (March 15), the Penn State Board of Trustees approved the $3,648,000 acquisition of 3110 Research Drive in Cato Park from State College-based developer Torron Group L.P.

The appraisal of the property was “considerably higher” than $3.6 million, according to Daniel W. Sieminski, associate vice president for finance and business. The University’s lease agreement was to last until December 2017.

“By purchasing now, the University will save almost five years in lease costs estimated in excess of $2 million,” he said.

The property includes a 30,215-square-foot warehouse and 44 parking spaces. Built in 1973, the building is “very well maintained,” according to Sieminski, but he said it would likely need a new roofing system in the short term.

Leased by University Libraries since November 2007, the warehouse has been used for book storage and retrieval, and will continue to be used for that purpose, according to Sieminski.

The acquisition is contingent upon the property being deemed acceptable by University representatives and the Office of Physical Plant. If deemed acceptable, the property’s purchase is expected to be finalized in the near future.

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Last Updated March 15, 2013