Steve Brown’s decision to sell his five private residence halls could be largely prompted by the University of Wisconsin’s plans to expand the number of campus luxury dorms, according to several city of Madison and UW officials.

Vehemently opposing the university’s $110 million East Campus Plan to add UW housing spots for nearly 800 more students, Steve Brown Apartments argued the new dorms would pose a serious threat to the Madison property market. Brown claimed private landlords would find it nearly impossible to compete for tenants with UW dorms should the university substantially expand its housing capacity.

“Brown was attempting to fight the dorm expansion plan because he felt very strongly that it would adversely affect the Private Residence Halls, two of which he only recently purchased,” said Ald. Mike Verveer, District 4.

“Had he known the university was planning an expansion, he would not have purchased the Regent and the Towers,” Verveer said. “[Brown] said that to me in one of our meetings.”

Ald. Austin King, District 8, agreed buying the two properties was hard on Brown’s business.

“I don’t think Steve was incredibly happy with his purchase in the first place,” King said. “I think it raised a lot of eyebrows when he purchased the Regent and the Towers.”

King noted purchasing those two buildings in 2003 probably exacerbated pre-existing market difficulties for the Madison landlord.

“Providing dorm service is really hard … It’s an incredibly difficult market,” King said, adding Brown’s decision to put the Private Residence Halls up for sale is not surprising, particularly considering how competitive the student housing property market is on campus.

Brown is reportedly set to sell his private dorms to the Texas-based real estate firm FirstWorthing for 60 to 65 million dollars. The sale would include the Highlander, Statesider, Langdon, Towers and the Regent.

Over the next couple of years, Brown will most likely continue to manage those private dorms he formally owned, according to Verveer and several Steve Brown Apartment employees.

Steve Brown Apartments would not return repeated phone calls.

To fight the university’s plans to expand housing last year, Brown hired lobbyists and public relations experts, according to Verveer. Steve Brown Apartments fought the UW proposed dorm construction at all levels of government: UW system board of regents, city hall, and even the state legislature.

Brown also publicly criticized the new construction as unneeded and potentially damaging to Madison’s annual property tax revenue. He argued excess campus housing could cause downtown property values to plummet.

Brown houses approximately one-fifth of all students living in campus student housing. Should the university construction plans pan out as projected, the student numbers needed to fill his five dorms would likely be seriously depleted.

Paul Evans, head of UW housing, said he was aware Brown had put his residence halls on the market after the university received several calls of inquiry about the sale of Brown’s properties this year.

“A number of firms called and asked questions,” Evans said, adding companies were particularly interested to learn about changes the student housing market would undergo due to UW’s plans to add additional campus dorms. “[T]hey were looking into to our plans for the new dorms.”

Evans said the decision made by the university to tear down Ogg Hall and build several new housing facilities for students was needed. He argued a large number of freshmen are denied public dorms each year, and therefore often forced to sign a lease with Steve Brown Apartments for housing.

Right now there are hundreds of first-year students who don’t have the choice to live on campus,” he said. “And we think for first-year students, we would like be able to provide them a choice.”

Verveer said it might be beneficial to students for Brown to sell his private dorms because it would afford them more housing options.

King agreed providing students with more housing selection is important. He said Brown’s five private dorms created too much of a “monopoly” on campus in terms of student housing.

“A [housing] monopoly that extensive and pervasive was not good for the student housing market,” he said, noting the prices Brown charged for many of his halls land on the higher end of what a typical student can afford.

“They were certainly out of my price range,” King said. “I don’t think anyone would call the Towers affordable housing.”