Concordia University, a northeast Portland staple since the early 1900s, has announced it will close this year.

The private, nonprofit Lutheran university’s board of regents voted to cease operations at the end of its spring semester. The university’s 24-acre campus is expected to eventually go up for sale.

“The Board made this decision to prioritize the well-being of students, faculty, and staff and fulfill its fiduciary obligations,” Concordia said in a statement. “In the Board’s best judgment, a thoughtful and orderly closure process offers the best possible outcome for all affected parties.”

The university said the closure comes “after years of mounting financial challenges, and a challenging and changing educational landscape.”

Final commencement ceremonies will be held in late April and early May.

Nearly 5,900 students attended Concordia in 2018, according to its website. The university said it’s in talks to provide students the chance to continue their education elsewhere.

The university faculty includes 63 full-time and 172 part-time instructors.

In 2015, the U.S. Department of Education alleged Concordia illegally outsourced some of its online programs to a private contractor HotChalk Inc. Online instruction was the pivotal force that propelled Concordia’s rise to one of the nation’s largest providers of Master of Education degrees. A $1 million agreement was reached to settle the claim while denying wrongdoing.

Concordia, in statements to The Oregonian at the time, said it had not outsourced any part of its academic program.

In the 2018 annual report, university officials listed $113.2 million in revenues — down from $143.3 million in fiscal year 2015 — with the majority of dollars coming in from tuition and fees. The report also noted an “upward trajectory” of enrollment with more than 6,000 students worldwide on campus and online.

Last week, the university held its ninth annual Victor Atiyeh Leadership in Education Awards. Rapper Common, the event’s keynote speaker, spoke of Concordia’s work to make early childhood education a priority and its unique partnership with Faubion Elementary called 3toPhD. Concordia later announced on Facebook that the event last Tuesday raised $355,000 for student scholarships for the program.

By Monday, a few commenters on the page asked where the money would go. A school official responded that the university is consulting with the Oregon Attorney General and will “keep donors informed.”’

Wim Wiewel, president of Lewis & Clark College, said private schools with strong reputations and endowments will survive. But in this era of smaller enrollments, he said, no school can afford to stand still.

Lewis & Clark is considering adding new programs in data science, entrepreneurship and health studies. The education experience at private colleges is generally of high quality simply because class sizes are generally smaller, he argues. Lewis & Clark’s student faculty ratio is 12-1, half the number of Oregon public colleges.

“But that’s not cheap, Wiewel said. “So you need that brand strength and endorsement to make it work. Schools that don’t have those assets are going to experience some difficulty.”