Regents approve apartment complex purchase

By Jessica Paine | Dec. 8, 2023

MURRAY – With the intent of eventually closing an on-campus residential area known as College Courts, the Murray State University Board of Regents voted today to pursue the purchase of Station Seventy-Four, an apartment complex located on North 16th Street, for $16.5 million.

The Murray State University Board of Regents voted to move forward with purchasing this property located at 1515 Lowes Drive.Photo byJessica Paine/The Murray Sentinel

“The condition of College Courts deteriorates even though we’re putting a lot of money into those facilities,” MSU President Bob Jackson said. “Replacing College Courts will save us six figures of deferred maintenance and improvements money each year – this ongoing maintenance that we put into those facilities (which are) 60+ years old.”

Station Seventy-Four is a comparable size – 268 beds versus College Courts’ 264 – and is in a similar location, albeit on the other side of KY 121; but Station Seventy-Four was built in 2015, as opposed to College Courts, which was built in the 1960s.

In addition to the building being in a desirable location, the acquisition would save the university the hassle of building a new facility.

“What this would do,” Jackson said, “is it would avoid major construction timing issues that we’ve run into in the past, major construction costs that we deal with today and related other unknown risks – there’s a lot of unknown risks, we’ve learned post-pandemic, related to construction.”

Jackson noted that the university’s aging housing infrastructure has become a recruiting and retention issue, adding that enrollment projections for next year indicate there will be a great need for additional student housing.

“I think it’s important that we address not only the short-term but long-term needs of the university, and I think this acquisition would be in line with that,” Board Chair Leon Owens said. “It’s financially feasible, and it’s the best option that we have available at the time.”

The board authorized Jackson to enter negotiations for the purchase of the apartment complex for a purchase price not to exceed $16.5 million, exclusive of closing costs and taxes. The board further authorized Jackson to take steps to secure approximately $17.9 million in bonds for the purchase of the apartment complex.

The board unanimously voted in favor of the property acquisition and bond issuance; however, because he owns property in the vicinity of Station Seventy-Four, Regent Thomas Waldrop abstained from voting.