AlisoViejo, Calif. and Goodyear, AZ — Nelson Brothers Professional Real Estate, LLC (Nelson Bros.), signed an agreement with Great Hearts Academy to lease 100 percent of La Piazza at Palm Valley for their new non-profit charter school, Trivium Preparatory Academy. According to an announcement from Brian Nelson, Principal and Co-Founder of Nelson Bros., the initial terms of the lease are for ten years commencing on July 1, 2011 and terminating June 30, 2021 with the school occupying 23,398 square feet (76.7%) in the first year and the remaining 30,500 square feet (100%) beginning in the second year.
In addition, 900 square feet are being added as part of the renovation to accommodate the school. This 900 square feet will also be leased for the full ten years by the school.
“Trivium already has 100 percent of their enrollment filled with an 800 plus student waiting list,” said Nelson Brothers co-founder Patrick Nelson. “This was the original hope and strategy when we first acquired La Piazza,” he added. The retail center was originally purchased as a Tenant-in-Common (TIC) transaction and went under contract in August 2007. The 30,500 square foot property on 4.88 acres located in Goodyear, Ariz., was built in 2004.
Nelson Brothers was able to repurchase the $5.1 million loan for $2 million in March of 2010. “We were very fortunate to have been able to get the loan down, which made us extremely competitive in the market place to land the school,” Nelson continued, “the Goodyear market is enormously competitive and we came out on top.” They sure did with Trivium occupying 100% of the building with a lease that increases 44% over the 10 years. Further, the charter school is state funded based on occupancy, which certainly isn’t a problem for any of their schools right now..
Great Hearts Academies is a non-profit charter school management organization which operates charter school “preparatory academies” (grades K to 12) in the Phoenix, Arizona metropolitan area. With over eight Academies and a current enrollment of 2,000 students and growing, Great Hearts Academies has gained a reputation as one of the most respected prep school providers in Metro Phoenix.
Based on test scores in rankings among public schools statewide, Academy students score 20% higher than the national average on the SAT test and 99% of their seniors are admitted to selective colleges and universities nationwide.
Nelson Bros. originally launched their real estate company in 2007 concentrating on the acquisition, financing and ownership of office, retail and multi-family properties for TIC investments throughout the West and Southwestern United States. The firm, based in Southern California is owned by brothers Patrick and Brian Nelson and currently specialize in student housing and assisted living properties.