InvestCore Commercial Closes Sale of Pre-K Education Center in San Antonio
- May 18, 2016
By Anca Gagiuc, Associate Editor
San Antonio—San Diego-based InvestCore Commercial has completed the sale of a 50,150-square-foot building in San Antonio. The financial details of the transaction were not disclosed.
The building is triple-net leased to the City of San Antonio Pre-K Education Center, with options to extend. The buyer is a private Southern California-based REIT; the seller/developer was represented in the transaction by Ed Colson and Michael Campbell, co-founders and principals at InvestCore Commercial. The same team assisted the developer in the disposition of a second Pre-K facility in San Antonio in June 2015.
“We received numerous inquiries and offers on this latest Pre-K facility,” said Colson. “This is despite the fact that the lease only has five years remaining. Interest like this speaks volumes about the investment climate, as investors are clearly looking for stable, credit-worthy tenants at higher cap rates.”
The facility sits on a 5.4-acre site located at 1235 Old Highway 90 W, close to Wrenn Middle School, Missions Baseball Academy and the San Antonio Food Bank. Joint Base San Antonio, which includes the U.S. Army Fort Sam Houston, the U.S. Air Force Randolph Air Force Base and Lackland Air Force Base, is just three miles away. The Joint Base San Antonio, one of the 12 merged bases in the U.S., supports a population of more than 250,000 personnel and 80,000 members. The recently sold facility is the only education center targeting pre-kindergarten-age children in the area.
The expansion of Pre-K education is one of San Antonio-s top priorities and programs. Former Mayor Julian Castro, now serving as the U.S. Secretary of Housing and Urban Development (HUD), is backing the program which will grow to provide four city-run Pre-K education centers in each of San Antonio’s quadrants. The program is funded through a $30 million sales tax program.
“Since its inception, this Pre-K education program has been very well received by the residents of San Antonio,” said Campbell. “It has received national attention, with other major cities in the U.S. looking to implement similar programs.”
Image courtesy of InvestCore Commercial