Case Study: Brighton School – Mountlake Terrace, WA

In 2015, we acquired a 31,610 SF former church property in Mountlake Terrace, WA. Recognizing the unique opportunity, we repositioned the asset into an educational facility for Brighton School, a leading private institution. Following extensive renovations, we secured Brighton School on a long-term 20-year lease, establishing a stable, high-credit income stream and significantly enhancing the property's value

INVESTMENT SNAPSHOT

Phase: On Going

Location: Mountlake Terrace

Property Type: Specialty

Size: 31,610

Acquisition Date: 2015

Purchase Price: 7264000

Equity Raised:  $2,364,000

Sale Price:  $10,000,000

Strategy: Value Add

IRR: 18.25% (Projected?)

Multiple: 3.20

Cash on Cash: 9.35%

INVESTMENT THESIS

Adaptive Reuse: The property's unique layout and location were ideal for adaptive reuse, converting it from a religious facility into an educational campus with minimal new construction.

Tenant Partnership: Brighton School, part of a national network of private schools, committed to a 20-year absolute NNN lease, providing highly stable long-term cash flow.

High-Barrier Market: Mountlake Terrace, situated between Seattle and Everett, has limited available land and strict zoning, making large, centrally located educational properties extremely scarce.

Value Creation: Through strategic repositioning and tenanting, we achieved significant NOI growth and property value appreciation, positioning the asset for a strong exit.

CURRENT STATUS

Asset Performance: The property is fully leased under a long-term NNN structure, generating predictable, durable cash flow with minimal management oversight.

Market Dynamics: Rising demand for specialty educational facilities, combined with strong regional demographics, continues to support asset value appreciation.

Exit Strategy: Currently evaluating a potential sale at a $10,000,000 valuation, representing a successful realization of the value-add business plan.