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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][b]The land acquisition did involve debt.  And the MacArthur campus's assessed value is less than $20 million, including the buildings.  So when that parcel is sold the school will have less money, less land, and fewer facilities than it started out with[/b].  [/quote]

Wow, PP. If the facts are truly as you see them, only an idiot would make that kind of deal![/quote]

Not necessarily.  The usual rules of economic rationality don't always seem to apply when you're spending OPM (other people's money). [/quote]

Well, with all due respect, given your post I think is clear that you are not an economist/robust investor/business strategist- consultant/financial adviser.

Regarding the "fact" of buying the land with debt: Given current interest rates I think it would be very unwise not to do so. Only people unable to upbeat the current mortgage rates (historically low rates) will not acquire such an asset with, at least, some level of debt. If I can get a better return investing my savings in something else, why I would not do it?

Moreover, have you heard about "hedonic prices"?

http://www.investopedia.com/terms/h/hedonicpricing.asp

Having the whole campus in one same facility-location might increase  the school equity, give the school comparative advantage over other competitors, facilitate economies of scale, synergies, and slope-up LM students learning curve, and/or position the school differently.

Finally, I believe is a little daring to challenge and question an investment without having much info about it, without being an expert on the field, and given that GDS administration and Board of  Trustees seems pretty competent -at least on paper.

Why criticizing for the sake of criticizing? I don´t get it.
[/quote]

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