San Jose Private School Building Bought by Store Capital

An Arizona-based real estate investment trust is the new owner of a San Jose private school building.

Store Capital Corporation, acting through its Store Master Funding XLII LLC, acquired 1290 Parkmoor Avenue on the campus of Basis Independent Silicon Valley Upper School for $62.6 million, the Mercury News and Silicon Valley Business Journal reported. Spring Education Group and a subsidiary of net lease advisory firm Surmount brokered the deal. The sellers bought the structure — the campus’ only building — in 2020 for $77.7 million, and the latest sales price is less than the assessed value of $63.2 million.

Store Capital specializes in buying properties that have one tenant and leasing them back to the occupant; “Store” stands for “Single Tenant Operational Real Estate.” The Basis Independent school, which will continue to operate at 1290 Parkmoor, is one of the educational brands of Campbell, California-based Spring Education Group, which operates 215 educational institutions across the country. Store Capital also owns Basis’ Sunnyvale campus through its Store Master Funding X LLC.

Basis relocated its upper grade levels to the San Jose property in 2013, buying the site that year in partnership with Highmark Development Group and EPR Properties when it had an estimated asking price of nearly $17.2 million. In 2019, Saratoga, California-based Spring Education Group, an entity backed by investment firms Primavera Capital Group and Brookfield Asset Management, bought the private school and its buildings for $77.7 million, completing the acquisition the following year. Spring bought the location with net lease investment advisor NNN Pro, which merged last year with STNL Advisors and United Global Development Company to form Surmount.

The deal to purchase the 1290 Parkmoor building in San Jose isn’t Store Capital’s first arrangement involving a Spring Education Group school. In 2023, the firm bought a building at 341 Great Mall Parkway in Milpitas, home to a Stratford School location, for $25.8 million. Stratford School is another private school brand of Spring Education Group.

— Chris Malone Méndez