- Metropolitan College of New York plans to sell its Financial District campus to The City University of New York (CUNY) for $40M, using proceeds to reduce debt and redeem bonds.
- The college, which holds about $60M in outstanding debt, had previously placed the property on the market under a forbearance agreement with bondholders.
- The sale still requires approval from bondholders and the school’s accreditor, and will serve as a temporary home for CUNY’s Hunter-Bellevue School of Nursing during construction of a new consolidated campus.
A Financial Lifeline
Metropolitan College of New York (MCNY), a small private institution, is pursuing a lifeline by selling its Manhattan campus to CUNY, aiming to chip away at a debt load nearing $60M. According to Bloomberg, the $40M deal, disclosed in an Aug. 26 regulatory filing, would allow MCNY to redeem a portion of its bonds and cover deferred debt service.
What’s for Sale
The deal includes approximately 100,000 SF of commercial condominium space at 40 Rector Street, designated for academic and administrative use. The property currently houses MCNY’s president’s office, as well as alumni and tech departments.
The sale follows MCNY’s decision last year to list the campus under terms agreed with investors, after its bonds were downgraded deep into junk territory by Fitch Ratings.
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CUNY’s Strategic Move
CUNY plans to use the location as a temporary home for the Hunter-Bellevue School of Nursing, as it develops a consolidated health sciences center. A CUNY spokesperson confirmed that negotiations are still ongoing, though the university has signed a letter of intent.
Why It Matters
For smaller, financially struggling institutions like MCNY, real estate remains one of the most valuable assets. The ability to sell a prime Manhattan property provides a path for bondholder recovery and temporary operational stability. The deal also reflects a growing trend of universities monetizing or consolidating real estate amid financial pressures and changing enrollment patterns.
What’s Next
The proposed transaction still hinges on approvals from bondholders and the college’s accreditor. Meanwhile, CUNY will continue moving forward with plans for its new consolidated health sciences campus, using the acquired space as an interim solution.
As college finances tighten nationwide, more institutions may look to strategic real estate sales as a way to stay afloat.
