REAL ESTATE SERVICES
SITE SELECTION / DEVELOPMENT
Site selection involves identifying and evaluating potential sites on which to construct new early education facilities. This process involves analysis and understanding of demographics, traffic, zoning and development regulations. Optimal sites are in areas zoned for commercial development, such as; near residential subdivisions, office parks, greenfield sites (land not previously used unless for agriculture or forestry), and brownfield sites (land previously improved with houses/commercial buildings). Development involves gaining approval for early education use (entitling) and constructing the site.
FINANCING / SALES LEASEBACK TRANSACTIONS
Financing involves finding lenders (such as banks), and providing the information required for them to consider investing in an early education facility. Sale-leaseback transactions are when a property owner sells the property but continues to occupy the premises under a lease agreement. This allows the business owner to raise funds through the sale of the real estate.
ASSET MANAGEMENT / ADVICE
Asset management involves understanding the life cycle of a real estate portfolio and maintaining a plan of acquisitions, divestitures, and the benefits and consequences of different ownership structures.
1031 TAX DEFFERED EXCHANGES
Under Section 1031 of the United States Internal Revenue Code (26 U.S.C. § 1031), a taxpayer may defer recognition of capital gains and related Federal income tax liability on the exchange of certain types of property. This can be used as a strategy when selling an early education investment property.
ACQUISITION DUE DILIGENCE
Due diligence involves detailed background checks in advance of any real estate purchase. This involves confirming zoning, permitted uses, development regulations, and matters of title and flood insurance. In addition, prospective purchasers may want to conduct additional inspections such as environmental, soil and building to identify any areas of concern that may impair the expected use and ability for a lender to provide financing.
SALE OF NET-LEASED FACILITIES & SCHOOL INVESTMENT PROPERTIES
Many early education facilities are owned by third-party investors who lease the properties. These are routinely bought and sold by investors looking for diversification in their financial portfolios. Child care facilities and school investment properties are generally considered to be safe assets and investments, and are easily understood by investors.