In May 2024, AU completed a sale-leaseback of the KWC. The decision to sell the Kardatzke Wellness Center (KWC) was part of a broader financial strategy to improve the university’s liquidity and support long-term transformation initiatives. This means the building was sold, but the university continues to operate it fully under a long-term lease agreement. Student access, services, and programming remain unchanged.

This strategic move enhances the university’s financial flexibility and supports our long-term vision. By increasing liquidity, we amplify the university’s long-term resilience. The continued operation of the KWC under university management ensures that our commitment to student wellness and athletics remains unchanged, while positioning us for a stronger future.

This is a strategic financial decision that unlocks capital for direct investment in student-focused priorities. It’s a common and proven tool used by private universities to strengthen their financial foundations while continuing full use of essential facilities.

In 2024, the university sold the Kardatzke Wellness Center (KWC) to a trusted nonprofit partner. As part of that sale, the nonprofit took out a mortgage from the university itself, meaning the university still held a financial interest in the building. At the same time, we signed a lease to continue using the building just as we always have—so nothing changed for students, athletes, or staff. 

Now in 2025, the building is up for sale again—but this time, we’re seeking cash offers. Just like before, the university will continue to lease and operate the building, no matter who owns it. That means all athletic programs, student access, and daily operations will stay exactly the same.

The reason for this sale is to improve the university’s cash flow. In simple terms, it gives us more flexibility with our finances so we can invest in priorities like academics, student services, and campus improvements—without disrupting anything happening inside the KWC.

In summary, the KWC leaseback structure is transitioning from a non-cash to a cash transaction, allowing AU to fully realize its financial value while maintaining uninterrupted use of the facility.

Yes, the university retains exclusive use of the building through the structure of the sale-leaseback agreement. The terms of the lease ensure that the building continues to serve its current purpose. While the property is listed for sale with a sale-leaseback provision, any future transaction would maintain the university’s operational control and uninterrupted use of the facility.

Athletic teams and student activities that currently use the KWC have continued to do so uninterrupted since May 2024. The university remains the sole leaseholder and operator of the facility, ensuring that our students have full access to the amenities they rely on.

Yes. AU is aligning its operations and physical footprint with current enrollment size and demographic trends. Our campus was built out over decades to serve 2,500+ students. Today, we consistently serve 1,000–1,300 students. Our infrastructure is too large for our community, and we’re pursuing strategic ways to downsize the current geographic footprint.

With fewer students graduating from high schools each year due to population decline, we’re focusing on sustainability to ensure we serve future generations with excellence. Colleges nationwide have hit an enrollment cliff, which is reshaping the higher education landscape. To sustain a high level of excellence and stewardship, we are scaling our operations to reflect this new reality, just as families, churches, and businesses adapt to changing needs.

We’ve faced real challenges since COVID-19, like many small private institutions. The pandemic accelerated pressures that were already building due to declining college-bound populations in our region.

This transition—including the KWC sale and broader campus sustainability work—is not a sign of sudden crisis, but a strategic and long-overdue response. We are currently operating with a balanced budget for our fiscal year, which began June 1. We are doing the hard but necessary work now to ensure AU is strong, focused, and thriving by 2027 and beyond.

Yes. Both the KWC transaction and the campus safety transition are part of a broader, strategic review of how AU operates. We are aligning with modern best practices and student-centered models. A new comprehensive safety and security approach has been developed over the summer and will be implemented at the start of the new academic year.

We still have a sworn-in police force on campus, and there has been no disruption to this level of authority while we’ve been navigating staffing changes.

As part of our sustainability initiative, we continue to assess how best to use our space in ways that honor AU’s mission and support our students. Any future changes will be guided by transparency, stewardship, and student success.

We encourage students, parents, alumni, and community members to follow AU’s official channels for updates and context. Official channels include AU’s website, direct email, and social media accounts.

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Thank you for supporting Anderson University.
We remain deeply committed to shaping a thriving, sustainable future for our students, our mission, and our community.

Explore more about our long-term sustainability efforts to position AU for students who will come to AU in 2040 online through our Launch 2040 Strategic Plan.