Penn State sells two closing campuses for $6.25 million as it reduces real estate footprint

The Shenango and Wilkes-Barre properties are the first of seven Commonwealth Campuses slated for closure to be sold, as Penn State weighs sale proceeds against operating costs and deferred maintenance.
Sept. 23, 2026
3 min read
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Key Highlights

  • Penn State is selling two campuses for a total of $6.25 million, with properties to be used for educational, workforce, and community purposes.
  • Both campuses will remain operational through the spring 2027 semester before closing, as part of a strategic campus reduction plan.
  • The sale prices are below appraised values, factoring in deferred maintenance and ongoing operating costs to ensure cost savings.
  • Buyers plan to adapt the properties for new uses, including education, workforce training, economic development, and event facilities.
Courtesy of Dmitry Vinogradov | Getty Images
The Old Main building on the campus of Penn State University in autumn sunny day with students walking and biking.

Penn State has announced that it will sell two of the Commonwealth Campuses it plans to close next year for a combined $6.25 million, marking the university’s first real estate dispositions stemming from a larger effort to reduce its statewide campus footprint.

The Board of Trustees approved the sale of the 12.7-acre Penn State Shenango campus in Mercer County for $1 million to JCL Development LLC and the 57.3-acre Penn State Wilkes-Barre campus in Luzerne County for $5.25 million to HGC Development LLC. Together, the properties contain 29 buildings across roughly 70 acres, according to an official announcement by the university. Both campuses will remain open through the spring 2027 semester.

Renata Engel, vice president for Commonwealth Campuses and executive chancellor, said in the statement:

“Penn State has worked, throughout this process, to strike a responsible balance between stewarding the University’s resources and honoring our commitment to each campus community, including Shenango and Wilkes-Barre. Both proposals outline a vision for preserving the community-facing qualities of these properties while building on the educational impact the campuses have had for decades, and that’s an outcome we’re pleased to see reflected in each plan.”

Back in May 2025, Penn State announced that Shenango and Wilkes-Barre would close along with its other campuses in DuBois, Fayette, Mont Alto, New Kensington, and York after the 2026-27 academic year, which collectively account for 3.6% of Penn State students. Penn State has attributed the closures to enrollment, demographic, and financial pressures. Enrollment across its Commonwealth Campuses has dropped about 20% since 2016 and nearly 30% since 2010, even as enrollment at the main University Park campus has remained comparatively stable.

Sale prices fall below appraised values

Penn State didn’t disclose the appraised values of the two properties in its announcement, but university officials acknowledged during a trustees’ meetings that both purchase prices are below appraisal value.

According to local reporting by Spotlight PA, Sara Thorndike, Penn State’s senior vice president for finance and business, told trustees that the university considered a variety of factors beyond the just the purchase offers, including community needs, deferred maintenance, and the operating costs Penn State would continue to incur if it retained the properties beyond the campuses’ closure.

Why it matters

Penn State’s campus sales put a dollar figure on a question more colleges and universities are confronting as enrollment shifts: When does the cost of maintaining an underused property outweigh the value of holding onto it?

In this case, Penn State accepted offers below the properties’ undisclosed appraised values after factoring in deferred maintenance, utilities, and ongoing operating expenses. They’re part of a larger effort to reduce the physical infrastructure Penn State has to support as it concentrates resources on the 13 Commonwealth Campuses that will stay open.

These decisions also show that campus closure doesn’t necessarily mean demolition or abandonment. Both buyers are proposing adaptive reuse that retains at least some educational or workforce function, while moving the cost and responsibility for maintaining the properties off Penn State’s balance sheet.

Trustee Mary Lee Schneider said the savings from avoiding future maintenance and operating costs exceed the difference between the appraised values and the offers by a multiple, according to Spotlight PA.

The decision comes at a time when Penn State is managing a substantial facilities-renewal burden across its broader portfolio. The university has previously estimated its deferred-maintenance backlog at $2.4 billion and has directed additional funding toward slowing its growth.

Buyers plan new uses for both campuses

The proposed reuse plans would keep educational functions on both properties, although neither site will remain a Penn State campus.

JCL Development, a Sharon-based redevelopment company, plans to turn the Shenango property and its 12 buildings into a hub for education, workforce training, economic development, and cultural activities. At Wilkes-Barre, HGC Development, a subsidiary of the neighboring Huntsville Golf Club, plans to redevelop the land into a mixed-use site with plans that include educational uses through a proposed partnership with Misericordia University, as well as event and conference facilities associated with the golf club.

This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.
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