PHOTO COURTESY UTIUniversal Technical Institute, which offers technician training programs in the automotive, diesel, motorcycle and marine fields, has purchased the three buildings it occupies in Orlando, Fla.
In February 2022, UTI completed the consolidation of its UTI-Orlando and MMI-Orlando campuses into the current location, which includes the three buildings being purchased. The institute also subleased space in a fourth building.
The buildings total 154,300 square feet, and there is 20 acres of land included in the $26 million purchase price. The transaction will be funded from cash on hand, which includes funds from the company’s November 2022 revolving credit facility draw. The expected annual adjusted EBITDA benefit is approximately $2 million, and after-tax cash savings are approximately $500,000.
“Given the current real estate market dynamics and with our strong balance sheet and capital position, the opportunity to take ownership of the majority of our second-largest campus was strategically and financially attractive,” Troy Anderson, UTI executive vice president and CEO, said in a statement. “A core part of our strategy over the last several years has been to rationalize our real estate footprint and identify opportunities like this one, to further emphasize our campus footprint and cost structure.”
Added UTI-Orlando campus president Timothy Dauber: “The purchase of the Orlando campus illustrates Universal Technical Institute’s long-term commitment to the Orlando market and the state of Florida. … Owning the campus provides the flexibility needed to meet the increasing vocational needs of our students, as well as positions us to include value-added programs that will help satisfy industry employment needs.”
The campus offers the company’s core automotive and diesel programs, along with motorcycle and marine technician training programs with Harley-Davidson, BMW, Honda, Yamaha, Suzuki, Mercury and Volvo.
