UA Creating College Park Dorms?

If GMH Associates has its way, the University of Arkansas could be eliminating local businesses from competing for the right to own or manage a local apartment complex.

College Park Apartments in Fayetteville are jointly owned by GMH and Goldman Sachs. Goldman Sachs has been attempting to sell some of the properties, which worries GMH because it could lose several management contracts in a sale. GMH is trying to donate the Fayetteville complex to the UA, hoping that it would then issue tax-exempt bonds to later purchase the property and keep GMH as a management company.

One local commercial property owner expressed his concern with such a process. He said such a move would allow the UA to bypass a normal RFP (request for proposal) process.

“I’m not sure why the university would do this,” the commercial property owner said. “It’s in the dorm business, not the private apartment business. And this would not add student housing.”

There could also be some liability issues for the UA if it retains GMH. All current UA residences are managed by the UA housing office.