Basis McLean building sold for $103m
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Anonymous
| Did I miss a post about this $103m sale? Is the school moving? |
Anonymous
| No. Its a sale leaseback transaction. |
Anonymous
| I saw the transaction but it specifically mentioned that there was not a know leaseback. Did they say that they were leasing back? Curious where that info came from. |
Anonymous
| And when your high school is owned by a Chinese private equity firm and you have the chance to take real estate gains off the table and distribute to the LPs, you do it, even if it means moving the asset (in this case, the school). Believe me, they would move in a heartbeat without regard to convenience if it drives margin. It’s their business model. |
Anonymous
| Lots of misinformation in this post. The transaction is a sale of the building from a previous owner (was never owned by Basis) to a new owner. No impact whatsoever to the long-term lease by Basis. If you didn’t have a problem with the previous arrangement, you will continue to not have a problem. If you didn’t like the fact that Basis never owned the building to begin with, well that’s going to remain the same as well. |
Anonymous
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Incorrect. Spring Education, the previous owner, is the Chinese parent company of BASIS.
"It sold again in 2015 for $30 million to an affiliate of Kansas City, Missouri-based EPR Properties, then in 2021 for $48.57 million to Spring Education, according to Fairfax County records." |
Anonymous
Oh, weird. Don’t know how the previous arrangement worked then since the school had always rented out the building (I guess from its own parent company). In any case, the current lease is still locked in for 20+ years.
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Anonymous
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Did they ever build out the second half of that building that stood empty but cost them rent every year? They promised they would a bunch of times, but you'd think they would publicize the fancy new facilities they talked about endlessly in the early years.
Or did they just cram everyone into the existing space? A literal wall of silence about that. |
Anonymous
Ignorance. I bet you have not travelled around the world, nor have a business big enough to understand the business models of different entities. What do you? 😄 |
Anonymous
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PP. I actually own a US-based company that operates in several countries. I fully understand the PE business model and fully understand the uniqueness of China-based firms. All of them operate with the participation and approval of the government. Most have board members that are either part of the CCP or at least close affiliated. It’s not an indictment, just a fact. Even the multi-national firms (Goldman, JPM) have major limitations on what they can do. As you may recall, Bain and Co. execs were detained just a year or two ago.
So yeah, please educate me on international business and how a for profit school owned by a Chinese PE firm is what our kids should be flocking toward. And try to make at least two references to Niche in your response. |
Anonymous
| Wouldn’t be surprised if they take as many payments as they can, then announce they won’t be opening back right before school starts this coming fall. |
Anonymous
Gotta love finance bros lecturing parents about choices they’ve made for their kids’ education |
Anonymous
They were literally responding to the person asking about their business experience. |
Anonymous
| Um, yeah. Hold your fire. Note that it’s one post below questioning the qualifications to address the business side of the situation. |
Anonymous
Well people like you have been surprised for the past 5 years in a row as the student body keeps getting bigger every year, and every objective metric of a school (NMSF, college placement, SATs/APs) continues to put Basis among the top schools.
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