Redmond School

Challenge

A preschool operator in Redmond faced a unique challenge. They had successfully transformed an old fire station into a thriving Goddard School, providing high-quality education and care for children in the community. The school was at full capacity, and the operator wanted to tap into the equity built within the property without causing any disruption to the school's day-to-day operations. To achieve this goal, they sought a discreet off-market sale/leaseback transaction.

Action

When approached by the owner, we understood the delicate balance required to facilitate such a transaction successfully and recognized the need to maintain confidentiality to prevent any unsettling rumors or uncertainties among parents, staff, and stakeholders.

The first step was to conduct thorough discussions with the owner. Understanding the owner's objectives, financial goals, and timeline was critical to crafting an effective strategy. We worked closely with the owner to assess the property's value, rental income potential, and fair market rent. Our team crafted a long-term lease with minimal landlord responsibilities that would attract capital.

Result

Armed with a clear understanding of the owner's expectations, we initiated discussions with our extensive network of active 1031 buyers. These buyers were specifically seeking opportunities to place their capital into passive investment opportunities.

• Unlocking Equity: The transaction allowed the preschool owner to unlock the equity built within the property, providing them with a substantial cash-out benefit.
• Debt Clearance: The proceeds from the transaction were utilized to pay off all existing debt on the property, relieving the preschool from any financial burdens associated with loans or mortgages.
• Equity Partners Benefit: Additionally, the preschool owner was able to cash out their equity partners, creating a win-win scenario for all stakeholders involved.

Testimonial

“The entire experience working with Erik & Mike was marked by professionalism, transparency, and a genuine desire to help us achieve our objectives. I am sincerely grateful for their guidance and expertise, and I wholeheartedly recommend their services. As a result of their efforts, we were able to secure a fantastic deal that not only allowed us to unlock our equity but also enabled us to pay off all the property's debt. Additionally, we had the opportunity to cash out our equity partners, which was a significant win for everyone involved.”

Jeff Barison

Owner/Operator - Goddard School Redmond