Nine properties belonging to Philadelphia’s recently defunct University of the Arts (UArts) have just hit the market. This inevitable announcement by the commercial real estate firm JLL arrives about two months after the beleaguered art school filed for bankruptcy, following its unexpected shuttering in June.
UArts first took shape in 1985, following the merger of two prestigious, 150-year-old Philadelphia art schools. On May 31, UArts blindsided students and faculty when news broke of its sudden closure. In a since-deleted statement, board member Judson Aaron attributed the closure to dwindling cashflow—likely due to free-falling enrollment—and increased costs.
On June 3, UArts abruptly cancelled a town hall meeting planned for students. Two days later, UArts President Kerry Walk resigned. Students were incensed about the school’s lack of transparency, even though UArts did make efforts to help pupils transfer into nearby art programs. Some were surprised to receive their diplomas in the mail.
The University of the Arts in Philadelphia after a June 7 protest. Photo: Min Chen.
Six hundred faculty members and staff, meanwhile, were left without compensation. The Pennsylvania Attorney General got involved, the Philadelphia City Council held a hearing, and local politicians attended rallies. Faculty and students filed a class action lawsuit. Another case from the employees’ union soon followed. In August, UArts failed to merge with Temple University. Since then, UArts has asked a court to disperse its $63 million endowment amongst the 12 schools that took on its students—including Temple, which 44 percent of UArts’ 1,149 students now attend.
UArts filed for Chapter 7 bankruptcy in September, enabling the school to sell off its real estate, spanning 76,000 square feet across Arts Bank, Anderson Hall, Hamilton Hall, Furness Hall, Juniper Hall, Gershman Hall, Terra Hall, Arts Alliance, and Spruce Hall, all situated within Philly’s bustling South Broad Street commercial corridor. JLL senior managing director Jim Gabally characterized the sale as “a generational opportunity to reshape the heart of Philadelphia’s CBD.”
“In their current state, the buildings offer office, performance and theatre venues, libraries, galleries, residence halls, apartments, cafes, and classrooms,” JLL’s announcement read. Altogether, they have been valued at $87 million—compared with the $50 to $100 million the school purportedly owes (to whom, exactly, no one knows). “The sale process is designed to maximize value for the stakeholders in the University’s bankruptcy case,” JLL added.
The University of the Arts in Philadelphia after a June 7 protest. Photo: Min Chen.
Five of the nine buildings have historic status, “offering tax credit opportunities,” JLL said. Most are zoned for mixed use. “Many will likely become apartments,” JLL senior managing director Fran Coyne added, “but the campus offers an array of opportunities.” It’s available as a whole, or piecemeal.
Philly’s universities—particularly Temple—have reportedly shown interest, though a representative from JLL could not be reached to confirm nor deny the matter. UArts also did not answer an inquiry asking if any of the funds from these sales will benefit former staff.
