Real estate investment platform RealtyMogul opened the pledging window for an equity investment in a children’s charter school in New York City’s Bronx borough.

Bronx Charter School for Children offering sponsor Barone Management acquired a 99-year ground lease for a 24,300-square-foot vacant commercial building in the South Bronx neighborhood. The property will undergo a renovation, including the addition of an additional floor to add 4,200 square feet to the building, which will become a school.

Construction is underway and is expected to be completed by December 2024. An experienced team with a 24-year track record and expertise in charter school projects is managing the construction.

The submarket has become an attractive area for new businesses in the tech and creative industries. The site also is near popular attractions including Yankee Stadium, Bronx Zoo and New York Botanical Garden. 

The investment opportunity allows investors to support education while targeting attractive returns. New York charter schools are publicly funded and operated by nonprofit educational corporations. With over 1.4 million people residing in the Bronx and the ability for the education to be paid for through public dollars, enrollment is projected to be at full capacity before the holding period ends.

• Minimum investment: $35,000
• Target internal rate of return (IRR): 22.5%
• Target equity multiple: 2.19x
• Target cash yield: 8.2%
• Target investment term: 50 months

Barone Management is an expert in charter school development. The group is currently developing seven charter school projects and has five others fully active and operating. The real estate development and construction has operated in the New York City market since its inception in 1999. Barone takes pride in providing quality education to thousands of economically and socially disadvantaged students across New York City.

 

 

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