Charter School Capital, an academic investment group based in Portland, just took out a $38.2 million mortgage for two charter schools it owns in Broward County.
KeyBank provided the financing for Champion Academy of Distinction at 3367 North University Drive in Davie and Renaissance Charter School at 6701 West Sunrise Boulevard in Plantation, according to property records.
Three affiliates of Charter School Capital took out separate mortgages. AEP Charter Champion Academy LLC borrowed $8.4 million, AEP Charter Renaissance Plantation LLC took out $14.6 million, and AEP Charter Imagine Broward LLC, which owns Imagine Charter School at Broward in Coral Springs, closed on $15.2 million.
The schools were previously acquired from two local real estate companies, MG3 Development Group and ESJ Capital Partners, along with three other schools in Riverview, Coral Springs and Vero Beach for $71.7 million, last year. The portfolio encompassed 295,992 square feet spread across the five schools.
Charter schools have received more attention as of late on a national level, which could translate to more demand on a real estate level. Though they’re publicly funded, charter schools still have to pay rent if they don’t own their facilities — translating to steady income for investors like Charter School Capital.
Notably, the W.P. Carey investment trust bought a Broward County preparatory school for $68.6 million in June as part of a larger $167 million deal to acquire three U.S. private academies.