NYC schools get soaked on rent

TRD New York /
Apr.April 30, 2012 11:30 AM

A for-profit Michigan-based company that leases buildings to charter schools in Brooklyn is under fire for charging exorbitant rents, the New York Post reported. National Heritage Academies subleases to the charter schools it operates for between $38 to $45 per square foot, sources told the Post, but the New York City Department of Education pays between $5 and $25 per foot for the spaces it leases.

For instance, National Heritage charged the Brooklyn Dreams Charter School, on Parkville Avenue in Kensington, $2.76 million for rent and related charges last year, despite the fact that it paid only $264,000 per year to lease the space from the Brooklyn Diocese.

“Rents are negotiated by NHA and the school boards that choose NHA as its management partner,” said Joe DiBenedetto, a spokesperson for National Heritage. “NHA assumes all financial risks, makes needed investments to improve academic results, and typically waits up to 10 years to recoup its initial investment in a school it operates.

“The school is great, but I can’t see why they pay such a high rate — it’s ridiculous,’’ Brooklyn Dreams parent Les Fontain told the Post. [Post]

Related Articles

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork’s side businesses are fizzling

(Credit: iStock)

What’s wrong with J-51? Plenty, landlord reps say

SoftBank to take control of WeWork at less than $8B valuation

Chicago’s ice-cold office market is finally heating up. But don’t get too excited

Miki Naftali and 1045 Madison Avenue (Credit: Getty Images, Google Maps)

Naftali accused of violating zoning laws at UES development

148 East 28th Street and Governor Andrew Cuomo (Credit: Google Maps and Getty Images)

Citing new rent law, building buyer wants money back