Penn State Plans to Buy State College VFW Property for $2.8 Million

UPDATE 2 p.m. May 7: The full Board of Trustees approved the purchase during its meeting on Friday.

Original story:

Penn State intends to purchase three parcels near North Atherton Street from the Veterans Club of State College for $2.8 million.

The Board of Trustees Committee on Finance, Business and Capital Planning on Thursday morning unanimously recommended authorizing the acquisition of 129 and 133-139 N. Barnard St. The full board will vote on the purchase during its meeting on Friday.

The .66 acres is adjacent to university property along the 100 block of North Atherton Street. With the acquisition Penn State would own all but two parcels between North Atherton and North Barnard streets from Clay Lane to Park Avenue.

According to Sara Thorndike, senior vice president for finance and business, Penn State intends “to assemble the parcel with adjoining university-owned property.” The university has not outlined any specific long-term plans for the block along North Atherton Street between Clay Lane and Railroad Avenue.

The Veterans of Foreign Wars Post 321 has already closed and the property has been on the market since at least last year. The two-story VFW building at 139 N. Barnard St. will be demolished by the current owner, Thorndike said.

An adjacent apartment house at 133 N. Barnard St. has already been demolished. The third parcel is a 60-space parking lot.

The property was first listed for $5 million then reduced to $3.5 million in December. Penn State negotiated that down to $2.8 million.

According to Centre County records, the nonprofit Veterans Club of State College has owned the 139 N. Barnard St. property since 1949, the parking lot land since 1959 and the parcel where the apartment house was located since 1985.

The parcels are located in State College Borough’s Urban Village zoning district.