College Plans Sale of Manhattan Real Estate to CUNY to Pay Debt

A struggling college in New York City is planning to sell its Manhattan campus to The City University of New York, providing a reprieve for its bondholders.

CUNY intends to purchase the real estate located in the Financial District from the Metropolitan College of New York for $40 million, according to a regulatory filing dated Aug. 26.

Proceeds of the sale, after closing costs, will be used to redeem a portion of Metropolitan College’s outstanding bonds and pay past debt service that was deferred, the filing says. The college has about $60 million of outstanding debt, according to data ...