So I've posted on here before... I run a boutique development firm in the tri state area. We've traditionally been more active in industrial, but have an interesting relationship and an opportunity to develop a property which we would pre-lease to a charter. Specific tenant already has strong enrolment at an existing location. I don't think we have the same risk as a brand new school trying to establish itself.
I'm curious if anyone has ever done a deal like this. My initial thoughts are that we should be able to identify an attractive site and offer a premium to the owner (exceeding his pricing expectations as what the site should trade for as a residential site for ex), and achieve a strong yield on cost. Risk is mitigated on the one hand in that we would pre-lease. However, it seems like you have a problem if the school doesn't succeed. What else would you do with such a speciality project? How many schools are there out there looking for space?
Requirement is in the Bronx. Fairly wide geography.
Seems like you could either go community facility commercial condo, or a stand-alone facility. Though more complex from an entitlements perspective, I feel we're probably better off going after a new dev stand alone. Seems like it would be too difficult and costly to alter a comm facility space which was built into a resi or office project.
Any thoughts in general on this type of business plan?
I'd treat this the same as you would any office tenant. Financing will be a little tougher and exit cap rate will be a little higher is all.
Natus quo voluptas nostrum perspiciatis repellendus et. Reprehenderit error inventore nulla non omnis qui.
Et aut ipsam aut veniam sequi unde. Ad quos eligendi tempore quae fugiat. Dolores iure quia et dolorem rerum illum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...