The offer was reportedly denied by Princeton University, where Graves taught for several years, as the organization could not fulfill the "terms".
Kean prepares to establish the designer's former home The Warehouse into an education research Centre for its architecture and design school.
" Michael Graves was a good friend to Kean University," said Kean president Dawood Farahi. "His home, The Warehouse, where he lived and worked, will provide our students with access to the thinking, the motivation and internal procedures of one of the most visionary and prolific architects of our time."
The Postmodernist designer whose most famous works included the Portland Building and the Denver Public Library assisted to establish the Michael Graves College at Kean University, and its School of Public Architecture.
The school opened its Bachelor of Arts in Architectural Studies program in autumn 2015, with the Master of Architecture course due to accept its very first cohort in 2019.
Kean intends to use the Graves properties to host seminars and conferences for both students and professionals, despite their location 40 miles away the main school in Union near to Newark Airport.
" The Warehouse provided Michael Graves with a canvas to develop and enhance his ideas about architecture over the last 40 years of his life," stated David Mohney, dean of the Michael Graves College at Kean University.
" It will be an incredible resource for our varied population of students, who will experience first-hand how the dazzling mind of Michael Graves approached architecture and design."
Located on Princeton's Patton Avenue, The Warehouse was constructed in the Tuscan vernacular style in the 1920s, by the very same Italian stonemasons that dealt with Collegiate Gothic structures at Princeton University.
Graves spent 30 years remodeling the property into his home and studio.