- Sale Amount: $2,700,000
- Sale Date: February 2015
- Building Square Feet: 10,000 SF
- Land Area: 23,958 SF
- Zoning: CG
- Location: Mountlake Terrace, WA
21705 58th Ave W
Mountlake Terrace, WA 98043
For the past 30 years Brighton School has been successfully operating its K – 8th private school in a renovated post-office out of Lynnwood, WA. The school is owned and operated by Nobel Learning Communities, managing over 180 schools throughout the nation. As time elapsed and the student body grew to roughly 300 students, the existing site became too small to house the school’s campus, forcing Brighton to expand on to an adjacent parcel. Knowing that a fragmented campus isn’t ideal for the school, Brighton envisioned a new location that offers a superior campus and room for growth.
The AGM Solution:
A housing developer acquired The City Church site in early 2014 sitting on 6 acres of land just one mile away from the previous Brighton School location. The housing development short platted the site and placed the church building with 4 acres of land on the market. AGM immediately recognized the potential to bring value to an investor and to the Brighton School by introducing an equity partner and providing the necessary financing to acquire and complete the renovation project.
The property was placed under contract in the final quarter of 2014. AGM raised the equity through a 1031 exchange, coordinated the lease with Nobel Learning Communities, and procured the necessary financing to leverage the remainder of the funds needed to complete the renovation project. AGM partnered with a development company to facilitate the improvements, expansion, and land development, scheduled for completion in September 2015. The new campus will provide on-site pick-up/drop-off, a gym, soccer field, basketball court, two playgrounds, and facilities to support up to 400 students. The project has increased the value of the land over three times, and has a projected IRR of over 14%. The time horizon of this investment is 15 – 30 years coinciding with the long term lease in place.
The equity partner has owned real estate and operated his business on the land for many years. After selling both he looked to transfer funds through a 1031 exchange toward a long-term investment with stable cash-flow. The project with Brighton School as a tenant was a perfect fit.