The Board of Regents on Thursday approved the acquisition of the Edwards Brothers Malloy property at 2500 and 2550 S. State St. for the agreed-upon purchase price of $12.8 million.

The 17-acre site is currently the home of the Edwards Brothers Malloy book printing facility. It is strategically located adjacent to the U-M tennis, wrestling and gymnastics centers and a university commuter parking lot. No specific use for the property has yet been determined.

The university has completed detailed environmental testing and a comprehensive review of property title conditions, including deed restrictions, and has a plan to manage those findings. 

The property is subject to a right-of-first-refusal clause in a previous tax abatement agreement with Edwards Brothers that gives the City of Ann Arbor the right to buy the property at the same terms, including price. On Tuesday, the Ann Arbor City Council called a special meeting for Feb. 24 to consider buying the property.

As part of the sales agreement, Edwards Brothers would lease the facility back from the university through the end of 2014 for a payment of $250,000 a month. Edwards Brothers has decided to consolidate its printing operations at a second facility in Scio Township.

A tentative closing on the purchase has been set for the week of March 3.