An iconic San Francisco art school is selling millions of dollars worth of real estate in hopes of offsetting the declining number of students on their sprawling campus.
Academy of Art University listed 10 of its properties on Tuesday, many of them said to be prominent buildings in the city’s downtown.
The school is asking for a combined total of $130 million for more than 375,000 square feet, according to the Real Deal.
The university cited changing student needs and the growth of hybrid and fully remote education as the reason for the sell off.
‘This strategic shift allows us to reallocate resources toward areas that most directly advance our mission: preparing students for meaningful careers in the arts and design fields,’ a spokesperson for the school told the San Francisco Chronicle.
‘While the University will continue to operate with a significant presence in San Francisco, these changes reflect our commitment to innovation, flexibility, and ensuring our students’ success — now and in the future.’
According to College Tuition Compare, enrollment at the school has been steadily decreasing for the past decade, despite their almost 100 percent acceptance rate.
The private, for profit art school was founded in 1929 by Richard S. Stephens.
Academy of Art University listed more than 375,000 square feet of property
Among the major sell off was the iconic San Francisco St. Brigid Catholic Church
It was originally a very small operation, using just one loft to teach its students, per SF Gate.
The founder’s granddaughter Elisa Stephens is the current president of the university. She has been credited with making Art Academy University the real estate juggernaut it is today.
Despite its small beginnings, by the 2010s the school owned more than 40 buildings in the city used for campus locations and student housing.
Earlier this month, they began offloading properties. The school reached a deal to sell the Commodore Hotel which acted as student dormitories for $13 million, according to the San Francisco Chronicle.
Now, it is listing notable properties like the St. Brigid Catholic Church which has been a city landmark since it was built in 1902. The church was used as the school’s auditorium.
The Concordia-Argonaut Club, a once noteworthy private social club in the city also went up for sale.
The school has roughly 4,200 undergraduate students enrolled with tuition rates sitting at $37,000 per year. Students can study various degree programs including fine art, animation, advertising, and game design.
However, US News & World Report listed an 8 percent four-year-graduation rate for students. The WASC Senior College and University Commission classified the Academy of Arts University as ‘Accredited with Notice of Concern.’
The university faced a fraud lawsuit over recruitment practices which was settled in 2021. The suit alleged that the school used illegal recruitment tactics and cheated the government out of millions in financial aid.
Graduates have accused the university of being ‘dishonest’ with students about their future after graduation.
‘I just feel they were dishonest, saying you’ve got this great future in front of you. But I feel we were ripped off. Bamboozled. Tricked,’ a graduate with $431,607 worth of student loans told the SF Chronicle in 2020.
The school also listed a once historical private club called the Concordia-Argonaut Club
University President Elisa Stephens, the granddaughter of the founder, is credited with expanding the school’s real estate holdings
Earlier this month, they sold the Commodore Hotel for $13 million
Academy of Art University has also been at odds with San Francisco for zoning and permit violations. A 2016 lawsuit accused the school of illegally converting dozens of buildings for its campus without proper approval, per SFist.
The battle ended in a $58 million settlement, the largest of its kind at that time.
In May, the school announced their plans to end its intercollegiate sprots programs, which was motivated by an uptick in online learning.
Despite offloading about a quarter of their real-estate, the school remains on of San Francisco’s biggest landlords.
The Daily Mail reached out to the Academy of Art University for comment.
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