Virtus Real Estate Capital (“Virtus”), a leading asset manager of alternative real estate property types, announced today its acquisition of a 21-property portfolio of early education (“early-ed”) schools throughout Colorado, North Carolina and South Carolina in conjunction with joint venture partner, Charter Stone Capital. The investment marks a commitment by Virtus to the early-ed industry.
AUSTIN, Texas – July 25, 2018 – Virtus Real Estate Capital (“Virtus”), a leading asset manager of alternative real estate property types, announced today its acquisition of a 21-property portfolio of early education (“early-ed”) schools throughout Colorado, North Carolina and South Carolina in conjunction with joint venture partner, Charter Stone Capital. The investment marks a commitment by Virtus to the early-ed industry.
Education-related real estate is an investment cornerstone for Virtus, as it is both demographically driven and an inuring social need with unwavering demand during economic disruptions. Virtus has investments across the education continuum, from its charter school strategy (K-12th grades) to university-related investments, such as student housing. Over the past few years, Virtus has been actively researching the early-ed space and looking for the right opportunity to enter the market.
“This portfolio proved to be the right entry point for us because the school locations – in high-growth, larger metropolitan statistical areas across Colorado and the Carolinas – meet the criteria of the Virtus cycle-resilient investment strategy,” said Terrell Gates, Founder and CEO of Virtus. “This acquisition also highlights our team’s acumen and expertise, as we were able to purchase the properties at a below-market basis with compelling in-place cash-on-cash yield.”
The portfolio is leased to Morgan Stanley-backed Cadence Education, the seventh largest early-ed operator in the U.S. with 170 schools in 21 states. In closing the purchase, Virtus engaged with joint venture partner Charter Stone Capital to renegotiate the lease which created value by increasing the lease term through 2034 while mutually benefiting the tenant with lease modifications that help them achieve their long term objectives.
“This most recent acquisition demonstrates Virtus’ ability to focus on the demographic trends in the United States, as we’ve recently observed greater long-term demand for quality early-education due to rising numbers of women in the workforce, dual-income households and non-traditional households,” said Robert Schweizer, Chief Investment Officer of Virtus. “This expansion into a new industry that we have been studying for years is an example of how we are thoughtfully looking for other property types that fit our investment strategy.”
About Virtus
Virtus Real Estate, LLC, founded in 2003, brings thoughtful stewardship to the practice of real estate investment, delivering non-correlated alpha via cycle-resilient real estate. Over the last 15 years, Virtus has acquired 194 properties for a combined acquisition value of over $3.2 billion, and has fully realized 151 property investments. With a strong and established track record, Virtus has proven to be successful in all phases of the market cycle. For more information, please visit www.virtusre.com.
Disclaimer
This communication is not an offer of any security nor the solicitation of an offer to purchase any security.
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