Harvard Monetizing Campus Real Estate

“Fourthly, in strictly monetary terms, the University is holding land it values at $969 million in its most recent financial statements—an asset, outside the endowment, on which it is presumably earning little, if any, return. At a time when the endowment itself is being remade wholesale to improve lackluster returns, holding land for future use may have become too much of a luxury. One of the most valuable assets in MIT’s investment portfolio is its Kendall commercial properties. (Similarly, Princeton and Stanford benefit financially, and in other ways, by owning commercial office/research parks near their campuses.

Perhaps by happy coincidence, Harvard Management Company’s decision to reduce the endowment’s real-estate holdings somewhat diminishes the University’s exposure to real estate overall, making it a more comfortable proposition to monetize some of the Allston property.”

Operating budget and investment returns are the two biggest factors in growing the endowment.

Harvard Magazine on Allston

Harvard Gazette on Allston

Harvard University on Allston

Enterprise Research Campus, Harvard Planning Office

Post by Marcelino Pantoja