Denver-based real estate investment company Northstar Commercial Partnershas launched a $100 million fund to benefit charter schools across the state through assistance with real estate needs.
The Education Opportunity Fund is a real estate investment fund that will be used to find and purchase vacant schools, or to find other properties that can be converted into schools, said Brian Watson, founder of Northstar. Watson's money, as well as capital from other private investors will make up the fund.
The properties will then be leased to charter schools, which will have the option to buy the property from Northstar whenever they want, Watson said.
This method will save charter schools the hassle of finding properties, completing due diligence and other elements of the real estate buying process.
Northstar and the Education Opportunity Fund are currently working with 10 different charter schools, Watson said. Northstar has under contract a 60,000-square-foot property for use by a charter school in the Montbello area of Denver.
Vacant school properties are difficult to find, Watson said, coming along less than 10 percent of the time one is sought, so the company will also take into consideration vacant office and retail buildings for conversion into a space that is appropriate for a school.
The fund will operate statewide.
Original Denver Business Journal Article: http://www.bizjournals.com/denver/blog/real_deals/2014/10/northstar-commercial-launches-100-million.html