UNIVERSITY PARK, Pa. -- Penn State’s Board of Trustees Friday (May 4) approved the reassignment of the ground lease for a parcel of land occupied by a portion of the independently owned Village at Penn State. The lease, for a 50-acre tract of land adjacent to Fox Hollow Road and U.S. Route 322 in State College, Pa., has been assigned to the nonprofit Liberty Lutheran Housing Development Corp. following the Chapter 11 reorganization of the previous leaseholder, the Village at Penn State Retirement Community, in November 2011.
Signed in 2002 as a 35-year agreement between the University and the Village at Penn State Retirement Community, the original ground lease was transferred to Liberty Lutheran Housing Development Corp. in February 2012 as part of the court-approved sale of substantially all of the Village at Penn State Retirement Community’s assets.
Trustees approved the assignment of the original 2002 ground lease to Liberty Lutheran Housing Development Corp., along with an amendment to extend the lease to May 31, 2042, resulting in a full 30-year term. The agreement also includes the provision that payments by the leaseholder will begin five years after the effective date of the amended lease.