The University of Hawaii will pay more than $7 million in rent over a decade to the University of Hawaii Foundation for use of the Atherton YMCA’s historic residence halls.

Lease terms were approved last week by the UH Board of Regents.

The UH Foundation, the nonprofit fundraising arm of the university, has signed an $8 million purchase and sale agreement with the YMCA of Honolulu for the Atherton property. The sale is expected to close early next year.

The foundation, which UH said was in a better position to negotiate a sale, also will spend up to $5 million, at the university’s cost, on renovations and upgrades before leasing the space to UH for student housing.

“This would not have happened without the resources of the foundation,” said regent Lee Putnam.

Under the lease agreement, the university would pay $25,369.79 per month for the first year; $36,104 per month in years two and three; and $73,841.13 per month for the next seven years, the remaining term of the foundation’s loan, according to a memorandum to the Board of Regents from Michael Kaptik, UH-Manoa’s associate vice chancellor and dean of students.

The YMCA two years ago announced its intent to sell or lease the Atherton branch’s two historic buildings.

“The university had initially been interested in exploring the possibility of acquiring the Atherton property directly from the YMCA,” Kaptik’s memo said. “The YMCA, however, indicated that it probably could not extend its time frame to accommodate the university’s proposed acquisition schedule. Consequently, (the UH Foundation) was willing to step in and purchase the Atherton property and make it available to the university via a long-term master lease.”

The property — on University Avenue across from the UH-Manoa campus — consists of two residence halls with a combined area of roughly 34,600 square feet on about 43,107 square feet of land. The Charles Atherton House is a three-story building built in 1932 with apartments and retail space. An adjacent building, named after Mary Atherton Richards, was built in 1959 and includes a few apartments and a fitness center.

Under the master lease, the university has an option to purchase the fee-simple interest in the property.

It can exercise that option at any time, with approval by the regents. An agreed-upon purchase price, according to the terms, will need to sufficiently reimburse the foundation for its debt service and other costs.

Also under the deal, the Atherton YMCA staff will be provided office space for 20 years at a “nominal” cost in the Queen Lili‘uo- kalani Center for Student Services building at UH-Manoa.