ANN ARBOR, MI - Just one week after Fingerle Lumber announced it was planning to close after more than 87 years of business, the University of Michigan’s Board of Regents approved the purchase of land owned by the business.

The Board of Regents approved the purchase of 6.54 acres of land for $24 million. A closing date has been set for prior to March 31, 2019.

UM will have 90 days to complete due diligence on the property. The current owner intends to enter into a lease with the university, concurrent with the sale, that would allow it to continue to operate at the location along South Fifth Avenue, south of East Madison Street until Dec. 30, 2019. The university would receive a negotiated monthly rent for use.

The university’s future use of the property is yet to be determined, UM Chief Financial Officer Kevin Hegarty said.

“Its acquisition will provide a future opportunity for the expansion of Central Campus,” Hegarty said.

The three parcels of land include warehouse buildings, none of which are suited for university use, UM noted.

Brothers John and Mark Fingerle, the third generation of family members to run the business started by their grandfather in 1931, say they're ready to retire and close down operations.

John Fingerle, president of the company, and his brother Mark, who is vice president, said they’ve informed their staff that the company will close sometime in 2019.

"While we don't have a specific date in mind, I'm certain that it'll happen sometime during 2019," John Fingerle said, adding they plan to sell off the company's assets, including about seven or eight acres of property along both sides of Fifth Avenue and Madison Street.

The company has a sales center and hardware store at 617 S. Fifth Ave., across from its lumber yard by the Ann Arbor Railroad tracks, and a product showcase at 214 E. Madison St.