February 3rd 2024.
Virginia Union University just received an astounding $40 million capital investment from The Steinbridge Group, making it the largest gift the historically Black university has ever received in its 159-year history. This generous contribution will be put towards developing 100 acres of the university's underutilized land for attainable commercial and residential purposes.
The partnership between Virginia Union and The Steinbridge Group, led by CEO and founder Tawan Davis, was announced as part of a collaboration with the Student Freedom Initiative (SFI), a not-for-profit organization founded by Black billionaire Robert F. Smith. The Steinbridge Group provided a total of $100 million in capital investment, and SFI will act as the collaborating organization to help identify and support other Historically Black Colleges and Universities (HBCUs) and minority serving institutions. This initiative aims to expand investments in impact-focused real estate around these institutions, providing more affordable housing options for working families, including professors and professionals in the area.
Dr. Hakim J. Lucas, president and CEO of Virginia Union, expressed his excitement about the partnership, saying, "Virginia Union is heading towards new heights because our students and the community have high expectations for our institution." He believes that this investment will not only create new sources of income for the university, but also strengthen its ability to provide opportunities for students and the community.
SFI President and CEO Dr. Mark Brown noted that Richmond has a 44% Black population, but due to rising property values and tax assessments, many community members are facing barriers and have been forced to sell their homes in the neighborhoods they have lived and worked in for years. This partnership will not only help provide stability for these community members, but also contribute to the economic potential of the entire region.
Davis also highlighted the growth that downtown Richmond has experienced due to people moving into the region and closer to nearby Virginia Commonwealth University. However, he recognized that many HBCUs do not have the resources to fully utilize their available land for economically-productive purposes, which is where The Steinbridge Group comes in to lend a helping hand.
He explained, "America has a chronic housing shortage and HBCUs are chronically underfunded. Instead of seeing this as a problem, we see it as an opportunity to use private capital to address the issue and create a return that will have a positive impact for both the universities and private investors. We also invite these investors to continue to support these institutions and expand their commitment to them."
As part of this partnership, Steinbridge will be working with Virginia Union to develop a project on the North Side of Richmond, with the help of Richmond-based KEi Architects and Martin Architectural Group. This project will involve building 130 to 200 residential homes on university-owned land. In addition, Steinbridge and Virginia Union will collaborate to help graduates become homeowners, allowing them to build wealth in communities that are at risk of displacement due to gentrification.
Dr. Lucas emphasized the historic responsibility that Virginia Union has as the oldest continuously run nonprofit organization in Northside Richmond and as an anchor institution for the community. He believes that this investment will have massive benefits for the university, including increasing the value of the land by four or five times over the investment period, as well as boosting the university's endowment by 13% to 18%.
This exciting news comes as Virginia Union continues to break records with its enrollment, surpassing 2,000 students. The university is also set to participate in the 2024 NBA HBCU Classic against Winston-Salem State, further showcasing its excellence and impact in the community.
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