Fortec is looking to raise a $100 million fund to partially finance development of $300 million worth of new early education centers across the nation.
The Miami-based schools developer, led by Chairman Pablo Barreiro and CEO Martin Saidon, plans to develop up to 60 early education centers, each one ranging between 10,000 square feet to 15,000 square feet, in Arizona, Connecticut, Florida, Georgia, Illinois, Massachusetts, North Carolina, South Carolina and Texas, Barreiro told The Real Deal in an emailed statement.
In the past five years, Fortec completed more than $205 million in acquisitions and development of early education centers and schools in 12 states, including Florida. Recently, the firm paid $32.9 million for 10 early education centers in six states, Barreiro said.
In South Florida, Barreiro said, Fortec completed two preschools in Palm Beach Gardens that cost $5.4 million and $8.7 million, respectively, to build; built a $9.8 million K-12 school in Hollywood; and is currently developing a $10.8 million elementary school in Hallandale Beach.
“South Florida is a priority market for us,” Barreiro said. “We are pursuing several additional sites across Miami-Dade, Broward, and Palm Beach counties.”
The U.S. is facing a critical need for early education centers, which represents “a resilient, yet underserved sector” in commercial real estate, Barreiro said. Fortec identifies “day-care deserts,” neighborhoods where the demand for early childhood education outpaces available licensed childcare slots, he explained.
“These underserved communities, often overlooked by traditional real estate developers, are a primary focus for Fortec,” Barreiro said. “The company also targets fast-growing suburbs, workforce housing neighborhoods and regions affected by school rezonings.”
Moreover, early education center projects are an attractive investment because tenants sign long-term leases, typically between 15 years to 20 years, featuring built-in annual rent increases, Barreiro said. As a result, such developments provide investors with a “stable and predictable income,” he added.