BSC looking to sell campus to buyers outside Alabama

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August 6, 2024

Birmingham-Southern College is broadening its search for a buyer for its 192-acre campus by soliciting offers outside the state of Alabama. The shuttered institution announced it is working with a New York-based real estate brokerage to market the sale of the campus, which closed in May.

“BSC continues to have productive discussions with prospective buyers from within Alabama,” Daniel Coleman, president of Birmingham-Southern told AL.com. “However, given our responsibility to obtain the best price on the best terms for the campus, we are also open to approaches from outside the state. We will not disclose the details of our interactions with any prospective buyers.”

BSC retained Keen-Summit Capital Partners LLC and JLL executive vice president Hugo Isom of Birmingham to market the property as a “rare opportunity” to acquire the “largest college campus for sale” in the United States.

In a surreal one-page flyer advertising the campus for sale, BSC is referred to as a “Turnkey World-Class Campus” with 60 buildings on 192 acres.

“This is the premier college campus available for sale in the U.S. right now. It would be perfect for a college or university looking to expand or establish a satellite medical, technology, life science or other specialty campus,” David Levy, managing director of Keen-Summit Capital Partners LLC, said.

Birmingham-Southern’s financial challenges stemmed from a series of management and fiscal missteps. According to Alabama State Treasurer Young Boozer, the private college miscalculated millions in Pell Grant awards, depleted a $130 million endowment, and faced a downgrade of its bonds to junk status by Moody’s Investor Service. Boozer denied the school a $30 million loan approved by state lawmakers in 2023 due to insufficient collateral.

Alabama A&M University made an offer to purchase the campus for approximately $52 million in May. Separately, a collective offer was being considered by a consortium of Alabama HBCUs. The A&M proposal, which eventually totaled $65.5 million, was ultimately rejected, and other HBCUs are still exploring options to purchase the campus.

Grayson Everett is the state and political editor for Yellowhammer News. You can follow him on X @Grayson270