HARRISBURG, PA — Harrisburg University of Science & Technology (HU) announced today that it has initiated a strategic restructuring of the debt associated with its downtown Harrisburg real estate portfolio – particularly, one building that is underutilized. As a result, the University has elected to pause bond installment payments associated with two of its real estate assets, beginning with the scheduled February payment. This action includes extensive collaboration with bondholders, legal counsel, and financial advisors to evaluate options and determine the most appropriate path forward.
The restructuring is focused exclusively on the University’s real estate portfolio and balance sheet. Academic programs, teaching, student services, research, and workforce partnerships will continue uninterrupted.
Tuition revenue remains strong, new academic programs have been launched as planned, and the University’s student recruitment pipelines for established programs are hitting all targets for the upcoming cycles.
“This restructuring focuses on a real estate asset that has not met pre-pandemic projected occupancy timelines,” said Interim President David Schankweiler. “We are extremely pleased with the continued demand for our academic programs. We would like to thank our bondholders for working with us as we continue to plot a long-term strategy that will ensure HU provides a world-class college experience for generations to come.”
Designed and financed before the pandemic, the newly constructed Health Sciences Tower was based on projected space needs and economic conditions that have since shifted. Reduced downtown foot traffic, inflationary pressures, and temporary holds on commercial buildout within the first-floor condo and upper floors have delayed full development and exacerbated utilization. As a result, the current financing structure no longer aligns with the building’s use profile or the University’s current real estate needs.
Board Chair Michael Fiaschetti said, “This is a responsible and forward-looking step to align our real estate financing with present-day conditions. It reflects thoughtful stewardship and a commitment to ensuring that HU is strong for the next generation of students, partners, and communities we serve. Our academic mission remains firmly intact and is our top priority.”
Harrisburg University continues to expand academic offerings, deepen workforce partnerships, and advance programs that meet the needs of regional and national employers. The institution remains committed to high-impact STEM education, hands-on learning, and the economic vitality of Central Pennsylvania.
Media inquiries may be directed to the Office of the President at Harrisburg University.
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ABOUT HARRISBURG UNIVERSITY
Harrisburg University of Science & Technology (HU) is an independent, nonprofit university offering degrees in advanced manufacturing, engineering, robotics, nursing, cybersecurity, and other critical fields. Accredited by the Middle States Commission on Higher Education, HU serves a diverse student body through bachelor’s, master’s, and doctoral programs that link learning and research with practical applications. For information about HU’s affordable STEM degrees and professional development programs, call 717.901.5146 or email Connect@HarrisburgU.edu. Stay in the know by following Harrisburg University on LinkedIn, Instagram, and Facebook.
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