New College of Florida is seeking authority to borrow up to $47.5 million to complete the financial requirements of its sweeping takeover of the University of South Florida’s Sarasota-Manatee campus, which transferred to New College in July under legislation that also made it responsible for the debt attached to the property. That debt is concentrated in Atala Hall, the six-story residence hall and student center USF completed in 2023, with approximately $28.6 million in outstanding obligations New College must address before the end of the year.
Florida lawmakers approved the transfer in May, placing USF Sarasota-Manatee’s land, buildings and permanent facilities under New College’s ownership on July 1 while allowing USF to continue using academic buildings as its remaining students finish their degrees. That arrangement could last as long as four years, although the legislation gives New College only until Dec. 31 to arrange financing for the former campus’s outstanding facility debt — a condition that, if unmet, would void the transfer.
The deadline has brought New College to BankUnited, which would provide approximately $40 million through two loans, and a private accredited investor expected to contribute another $4.3 million under a subordinate financing arrangement. Presented to the college’s Finance and Administration Committee on Oct. 30, the proposal would authorize up to $7.5 million from the private investor, bringing the maximum borrowing to $47.5 million, although the financial model anticipates approximately $44.3 million in actual new debt…