Linkvest Properties, our commercial property acquisition affiliate, has entered into an alliance with Miami-based Freeport Equity for the acquisition of 50 Endeavor Schools (www.endeavorschools.com) throughout the United States.
This alliance is part of Linkvest Capital’s strategy for commercial expansion of its affiliate, Linkvest Properties, over the next two years. This partnership is the result of a solid long-term partnership we have built with Freeport Equity which emerged at the beginning of this year. Following a seamless mortgage loan closing granted by LV Lending for the acquisition of two Endeavor Schools in Colorado, our firms discussed future opportunities (you can read about this transaction here).
Freeport Equity and Linkvest Properties’ goal is to grow and expand the established Endeavor Schools brand portfolio (www.endeavorschools.com), which has a presence in more than 13 states; operates more than 60 schools in Georgia, Florida, Ohio, North Carolina, South Carolina, Maryland, Texas, Minnesota, Oregon, California, Virginia, Colorado and Nevada; and has approximately 10,000 students and 1,900 employees.
The total estimated investment over the next two years is $100 million, of which Linkvest and its co-investors will contribute 50% of the capital required to purchase the properties.
|What does the alliance imply?|
- Endeavor selects the schools it considers attractive.
- Linkvest Properties and Freeport Equity jointly perform the property and market analysis.
- Linkvest Properties and Freeport perform due diligence for the acquisition of the properties.
- Co-investors are presented with the opportunity to acquire the leased property from the Endeavor school.
- The legal structure is formed and the property is acquired; Endeavor Schools signs a new 15-year lease.
- Freeport manages the property and Linkvest Properties manages the financial resources, bank accounts and accounting of the companies acquiring the properties.
- In an estimated 5 to 7 years, the properties will be sold at a lower capitalization rate.
The aim is to distribute quarterly returns to co-investors equivalent to rates between 8% and 9% per annum. The expected return, which includes the gain from the appreciation of the asset, is between 12% and 15% per annum.
|About Freeport Equity|
Freeport Equity (https://freeportequity.com/) is a company based in Miami, Florida, founded and managed by Renzo Pisa and Nicholas Kling who signed a strategic alliance with Endeavor Schools for the acquisition of private schools in the United States.
Currently, the company has acquired 9 schools operated by Endeavor in 4 different states.
During the months of August and September, we will be making our first acquisitions: one in California and one in Texas.
Please let us know if you are interested in learning more about the co-investment opportunities we currently have available.
Thank you for trusting us and being part of our “Linkvest Network”.
Best regards,Linkvest Capital Team