Acquisition of the right real estate is crucial to the success of each facility development. Our process starts long before anyone calls a real estate agent or schedules any building tours. And it involves more than just knowing the address and the price.
Before searching for property, we model the economics of a project budget using each school’s five-year revenues, expenses, and enrollment figures. These numbers show us (a) the board’s expectation of an annual lease payment and (b) what the cost and condition of real estate should look like to meet those expectations.
Once we have a targeted all-in project cost, we then understand where a school must be located. Within the required geography, we examine a great number of variables for each property under consideration: demographics, traffic patterns, parcel size, distance from utilities, environmental conditions on site, structural condition of existing buildings, neighboring businesses, property tax implications, and a large category of variables called entitlements.
Entitlements are permissions or restrictions or laws that describe what can or cannot operate on a given property. Some entitlements have the power of law, like zoning. Others might be described in master developments and might prescribe maximum building height, façade requirements, or where your parking must be located. Others, like easements, can be inherited from old purchase agreements. Even securing a building permit is part of the entitlement process (you’re not entitled to begin construction without it). Entitlements can prevent you from putting your school here or require you to put it there.
The entitlement process requires understanding our obligations, requirements, and restrictions, while gaining approvals, permissions, and consents from participating regulatory bodies: local and sometimes state or federal entities.
Think you have an ideal parcel or building lined up for your charter school? Need help finding the perfect property? Need the project funded? Give us a call. We’d love to hear your story.