Correction: A previous version of this story had a photo of the wrong office building. The building in our photo was located at 1776 Millrace Drive rather than 1600 Millrace, which is where the actual building is located. We have removed the photo and we apologize for the error.
The UO Foundation bought a building in the Riverfront Research Park last week for $8.95 million in order to facilitate ongoing research. The 60,000-square-foot office building already houses several University of Oregon research institutes, but the foundation will charge them less rent than the previous property owner, aiming to save money. The building is located northeast of campus at 1600 Millrace Drive.
The building’s purchase is seen as an effort to bolster the university’s research endeavors. Research, being the cornerstone of a research university such as the UO, helps attract high-quality students and faculty while enhancing the school’s national reputation. Research helps solve problems in every area of human life, from medical and psychological treatments to engineering and technology.
“This purchase will save money and provide more flexibility, which directly supports our mission of serving students and providing the highest quality education,” UO President Michael Gottfredson said in a statement last week.
According to Julie Brown, senior director of communications for the university, 1600 Millrace houses several UO-affiliated institutes researching psychological and sociological issues including the Center on Teaching and Learning, the Prevention Science Institute, Technical Assistance and Consulting Services and the Child and Family Center.
Paul Weinhold, president and CEO of the foundation, said that the acquisition is, “ultimately a cost-saving benefit for the university.” Weinhold also said the foundation will have no say on how the UO uses the property.
Graduate students and faculty from many departments study at-risk adolescents, effective teaching methods, behavioral problems, special education, parenting and much more. Families and individuals in Eugene benefit from services and education provided in conjunction with this research.
The building also houses the Office of Internal Audit and chancellor’s office for the Oregon University System. The only office of a private company is ParaTools, a software and computing firm.
Weinhold says the offices not affiliated with the UO will move out when their leases expire. Their offices will then be used for more UO research.
The ownership of the property is complicated. Currently, the Oregon University System owns the land and leases the space to the building owner, who then leases the space back to the UO. The previous owner of the building was a Utah real estate holding company, GreenHornet Space Agency LLC.
Now that the UO Foundation owns the building, the UO will lease its office space from the foundation. The UO Foundation wields assets estimated over $900 million.
“It’s a very complicated financial transaction but it’s ultimately a lot cheaper rent,” Weinhold said. “Because we would never increase the rent. So as long as we own it, the price will never go up.”
The important point is that the property will benefit the UO more than it did before, both by saving money and offering more space for research. The building’s ownership will also transfer from the foundation directly to the UO in 10-15 years, according to Weinhold.
“The university is very fortunate that the University of Oregon Foundation is such an excellent steward of our donors’ contributions,” Gottfredson said. “I appreciate that they continue to find smart, creative ways to invest in higher education.”