New York City-based real estate investment firm Somera Road has offered a $17 million property purchase and leaseback package as an alternative to the pending Watkins College of Art and Belmont University merger announced in late January.
According to a release, Somera Road is also offering Watkins one year rent-free, in addition to future rent at 30 percent under market rate. In addition, upon closing the deal, the MetroCenter-located Watkins would receive a $1 million escrow fund to cover any short-term financial needs.
On Thursday, Somera Road officials emailed a letter of intent to the Watkins Board of Trustees, describing the offer as one that "we feel best provide[s] the Watkins College of Art relief from current capital constraints and an opportunity to remain a fully independent institution operating from its current location for many years to come."
"Liquidity from the $17 million sale will allow Watkins to save themselves without the unwelcome control of a religious university that is misaligned with Watkins’ core values and founding principles,” Somera Road principal Joe LeMense Jr. said in the release. “It will also provide Watkins funds for operating shortfalls and endowment and flexibility to further its fundraising efforts, increase new student enrollment and cement the college’s future in Nashville.
“With this assistance, we firmly believe the Watkins College of Art can evolve into an ever-more dynamic college for the creative elite and serve the arts community for many years to come," LeMense added.
As it stands, Watkins will begin to transition its operations to Belmont’s campus following the completion of this academic year.
The Watkins board issued the following statement yesterday: "We appreciate Somera's offer and will review it along with multiple other offers for the property."
The group of students, faculty, staff and alumni calling themselves Save Watkins issued a statement in response today: "It is very telling that the Board’s response only addresses the property sale aspect of the Somera Road proposal. It fails to address the fact that this new proposal, unlike Belmont’s, actually offers a path to maintain Watkins’ independent status."
The cost for Watkins to move from MetroCenter and any other financial components of the deal, which is structured as a merger, have not been disclosed. Save Watkins has been calling for more transparency. On Wednesday, District 19 Sen. Brenda Gilmore issued a letter to the Board of Trustees questioning why nearby Fisk University and Tennessee State University were not approached by Watkins.
“I am hard-pressed to believe that, had either been approached with a $15-20 million dollar gift, or a move-in-ready satellite campus complete with dorms, or similar partnership opportunity, they would have declined to entertain such a generous gift,” writes Gilmore in the letter.
She also calls for a public meeting with the Watkins Commissioners, Executive Committee and Board of Trustees to answer questions about the deal. Gilmore plans to invite representatives from Fisk, TSU and "other institutions or entities who might be interested in partnering with the Watkins board."
Somera Road is not new to MetroCenter. In mid-2019, the company paid $18 million for a six-acre property at 501 Great Circle Road. In addition, Somera Road is looking to undertake a mixed-use project in SoBro at 700 Eighth Ave. S., a site recognized for its Voorhees Building. The company also owns the North Gulch property home to Pins Mechanical Co. and 16-Bit Bar + Arcade and is planning a project in Wedgewood-Houston.
