INC NEWS - Duke University purchases rental properties to sell to single family homeowners

[Susan Kauffman]

Susan Kauffman
Director of Special Projects
Office of Public Affairs & Govt. Relations
Box 90028
Duke University
(919) 681-8975

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DUKE UNIVERSITY NEWS
Duke University Office of News & Communications
http://www.dukenews.duke.edu
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FOR IMMEDIATE RELEASE: Tuesday, Feb. 28, 2006

CONTACT: John F. Burness
(919) 681-3788
john.burness at duke.edu

DUKE PURCHASES SEVERAL RENTAL PROPERTIES NEAR CAMPUS

DURHAM, N.C. -- Duke University has purchased several rental properties in
neighborhoods close to campus, with the intent of turning them into
owner-occupied residences.

Duke paid Trinity Properties $3.7 million for a total of 12 houses and
three lots, all of which are located in the Trinity Park, Trinity Heights
and Burch Avenue neighborhoods, said John F. Burness, senior vice president
for public affairs and government relations. The university plans to make
minimal repairs and sell them to any family or single person who will agree
to invest in renovations and live in the houses.

“Since the early ’90s, Duke has been helping stabilize neighborhoods near
campus by increasing the stock of owner-occupied housing,” Burness said.
“This is part of that overall effort. The university has also received
complaints over the years about the noise caused by parties in the houses
rented by multiple students. This should help decrease that problem.”

Eugene Brown, a member of the Durham City Council and a longtime resident
of Trinity Park, said he was delighted with the news of the sale. “This is
a win-win for everyone, including Trinity Park, Duke University and
Durham,” Brown said. “Our neighborhood will become more residential, Duke
will have fewer town-gown problems and the city will increase its tax base
when these houses are purchased and renovated by new home owners.”

Except for one vacant house, all of the houses are currently being rented
-- and Duke students lease the majority of them. Allenton Realty is
handling the property management responsibilities for Duke and is sending a
letter to renters informing them of the change in ownership. Leases through
the end of the school year will remain in effect, but no new leases are
expected, Burness said. Renewals for next year will be honored with the few
renters with lease extensions.

“Fortunately, there is a robust apartment and rental market near the campus
that can accommodate students’ rental demand,” Burness said.

The three empty lots are in the Burch Avenue neighborhood near Campus
Drive. They will not be developed but instead left as green space to buffer
the campus perimeter, which is consistent with University Zone guidelines
established with the City of Durham.

The purchase is in keeping with one of the major goals of the Duke-Durham
Neighborhood Partnership, Burness said. The partnership was formed in 1996
to bring together residents and the university to help improve the quality
of life in 12 neighborhoods near campus and to boost student achievement in
seven public schools that serve those neighborhoods. Neighborhood
stabilization has been a priority for these neighborhoods.

Duke is involved in several other housing initiatives, all of which have
covenants requiring owner-occupancy as a means to stabilize neighborhoods.
In 2004, the university sold vacant land adjacent to East Campus for the
construction of 40 Trinity Heights houses and townhouses for faculty and
staff. Duke sold an additional eight properties in Trinity Heights that
have added to the stock of owner-occupied houses. The Trinity Heights
projects have added more than $140,000 annually to the property tax rolls.

The City of Durham has the lowest ratio of home ownership of any major
North Carolina city. In the area of affordable housing, Self-Help Community
Development Corporation, with a $4 million affordable housing loan from
Duke, has renovated or built more than 65 homes for first-time, low-income
homeowners in Walltown, an historically black neighborhood north of East
Campus. Duke also participates in a partnership with Self-Help, the City of
Durham, Durham Community Land Trustees, Habitat for Humanity and the
Southwest Central Durham Quality of Life consortium. The partnership is
building new affordable housing on Pauli Murray Place in the West End and
in other locations in Southwest Central Durham neighborhoods.
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The properties purchased by Duke are at the following addresses: 203 Watts;
508 N. Buchanan; 601 Watts/1102 Monmouth; 610 N. Buchanan; 702 N. Buchanan;
704 N. Buchanan; 708 N. Buchanan; 710 N. Buchanan; 814 Lancaster; 1103/1105
Urban; 1107 Urban; 1111 Urban; 700 Maplewood; 913 Wilkerson and 921½
Wilkerson Ave.

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