Colorado Real Estate Journal - October 1, 2014

AEP buys Colorado charter schools in $75m transaction

American Educational Properties has acquired two Colorado charter school facilities as part of an initial $75 million investment that included 11 schools in five states.

The deal was the first major transaction for AEP, which launched in June to address the increasing need for charter schools to find facilities that meet their current and future needs. AEP is a collaboration between Charter School Capital, the nation’s leading provider of working and growth capital to charter schools, and American Infrastructure MLP Funds, a private investment firm specializing in real property, infrastructure and natural resources.

Colorado properties included in the transaction were Imagine Firestone, a 48,210-square-foot property on 5.98 acres at 5753 Twilight Ave. that sold for $7.16 million, and Imagine Classical Academy at Indigo Ranch, a 48,210-sf school on 6.59 acres at 6464 Peterson Road in Colorado Springs. Imagine Classical Academy traded for $8.88 million. Inland PPD Charter Washington D.C. LLC sold the properties.

Also included were the acquisitions of Imagine Schools in Arizona, Florida and Washington, D.C., as well as two charter schools run by independent operators in Arizona and California.

“We are supporting one of the top needs charter schools face: facilities,” said Stuart Ellis, president and CEO of Charter School Capital. “Charter School Capital has committed more growth capital to support the movement and now we are able to ensure that charters have the best facilities to meet their educational goals. With $500 million to invest over three years, we are dedicated to providing charter schools access to the capital they need to thrive.” According to Charter School Capital, charter school enrollment is growing, with nearly 1 million students on waiting lists nationwide. AEP enables school leaders to determine their long-term facility needs and retain control of their buildings so they can focus on education.

“We are pleased to have an organization that focuses on charter schools supporting our efforts and mission,” said James McFadden, vice president and treasurer of Imagine Schools. “Having a landlord who partners with us and others in the charter school movement to support the growth of schools makes our collaboration more meaningful.” Imagine Schools is one of the nation’s largest charter school networks with 67 schools in 11 states and the District of Columbia and an enrollment of approximately 36,000 students.