"After 40 years there's no private partner," Weese said.
WVU expects to make close to $1 million the first year the complex is up and running, Weese said.
That would leave Paradigm with roughly $400,000, Helmick said, adding there are still many factors that could affect that amount.
Paradigm approached the university in May with details of the plan. However, Helmick said it had been working for months before to reach sales agreements with Sunnyside property owners. The sales between the former property owners and Paradigm were completed Thursday.
WVU bought the land from Paradigm on Friday.
"For purposes of this closing, it was very much like a pass through," Helmick said.
Paradigm did not make a profit selling the land to WVU, Helmick said. The $14.6 million the university is using to purchase the land will come from revenue bonds: Weese said the revenue from the development itself would cover the bonds.
Combined, the appraised value of the property is roughly $4.3 million. However, university general counsel Bill Hutchens said there is a large difference between the appraised value, which is used for tax purposes, and the fair market value.
He said there is a formula to compute the fair market value; although he said he didn't know what it was off the top of his head, it nevertheless shows the appraised value of a property is "dramatically lower" than market value.
"Market value, really the way I define it . . . is what a willing seller is willing to take and willing buyer is willing to pay," Hutchens said.
Both Hutchens and Weese said public-private ventures are commonplace for universities. WVU and other institutions would have a tough time coming up with all of the capital to make such a project a reality, Hutchens explained.
"This particular model is not something we've invented," Hutchens said. "As higher education across the country is squeezed more and more budget-wise . . . they've been doing this in many other states, and this has become the model."
Paradigm plans to start demolition work by late December or early January, Helmick said. Financing will be secured by that time: he decline to discuss the details of current loan conversations between the developers and banks, but anticipated Paradigm receiving a loan it would repay over the course of 25 to 30 years.
Maryland-based Grimm and Parker Architects designed the building. Helmick said the company has a reputation for creating similar student housing projects. The company has already spoken with a number of contractors and more specific information about the building process should be available in the next few weeks, Helmick said.
The development is slated to be ready for students by the 2014 fall semester.