Sell your private & charter school
Charter and private campuses, leased or owner-occupied. A lease that outruns the charter, and enrollment that pays the rent.
Private & Charter School at a glance
- Typical deal size
- $3M – $30M
- Lease structure
- NNN, or owner-occupied
- Typical term
- 10–20 years
- Escalations
- 2–3% annually
Overview
What private & charter schools are really worth
Our read
A school building is a long-term lease to a tenant whose revenue is set student by student. For a charter school, that revenue is public per-pupil funding, and it exists only as long as the charter does. For a private school, it is tuition, and it exists only as long as families keep choosing it. Either way, the building is underwritten against enrollment, not against a corporate balance sheet.
The charter is the central credit fact. Charters are granted by an authorizer for a fixed term and renewed on a review of academic, operational, and financial performance. Leases routinely run well past the current charter, which means the real question at most charter campuses is not whether the school pays rent today but whether it will be renewed. That is answerable — authorizer reports and performance history say a great deal — but it has to be asked.
The physical asset is more durable than the tenant. Classrooms, a gym, a cafeteria, outdoor space, and an approved drop-off plan are slow and expensive to create, and they suit other schools well. A campus that loses one school frequently finds another, which is a better backfill story than most specialized property can tell.
Valuation
How we underwrite it
The method
We underwrite the school first: enrollment history, waitlist, financial statements, and how much of its revenue goes to rent. A school paying a modest share of revenue in occupancy can survive a bad year; one stretched to make the payment cannot.
For charter campuses, the charter renewal timeline is read against the lease. We look at authorizer reports, renewal history, and whether the school belongs to a network that can support a struggling campus. A single-campus school and a national network signing the same lease are not the same credit.
The building is underwritten for the next school. Purpose-built classrooms, a gym, and real outdoor space hold their value to educational users; converted office or retail space with limited circulation and no play area narrows the field. Life safety and accessibility are reviewed against educational occupancy standards, which are stricter than commercial.
Bond financing, purchase options, and rights of first refusal are read early, because they are common in this sector and they shape what a sale can actually look like.
What moves the number
- 01For a charter school, the charter itself — its renewal history, its authorizer, and how far the lease term runs past the current charter
- 02Enrollment and waitlist, since per-pupil funding or tuition is the entire revenue line
- 03Whether the tenant is a single-campus school or part of a network that can support a struggling campus
- 04Rent as a share of the school's revenue, which determines whether the lease is sustainable through an enrollment dip
- 05Purpose-built classroom space with a gym, cafeteria, and outdoor area versus converted office or retail
- 06Drop-off and pick-up circulation, which the neighbors care about more than anything else on the site
Capital markets today
- 10-yr Treasury
- 5.24%
- 4.12% a year ago
- SOFR
- 3.87%
- 4.2% a year ago
- 30-yr mortgage
- 7.28%
- 6.3% a year ago
- CRE loan delinquency
- 1.53%
- 1.57% a year ago
- CRE prices, YoY
- 6.58%
- -2.7% a year ago
Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01
Diligence
What a buyer actually looks at in a private & charter school
- Check 01
Charter agreement, renewal history, and authorizer reports
A charter is granted for a fixed term and renewed by the authorizer. A lease that runs well past the current charter is only as good as the school's prospects for renewal, and the authorizer's reports show which way that is heading.
- Check 02
Enrollment history and waitlist
Revenue follows students one for one. Flat or declining enrollment is the earliest warning of trouble, and a waitlist is the clearest evidence of durable demand.
- Check 03
School financial statements and rent coverage
Charter and private schools are generally nonprofits with thin margins. How much of revenue goes to occupancy, and how much cushion remains, determines whether the lease survives a bad year.
- Check 04
Guarantor — the school, the network, or a supporting foundation
A lease signed by a single-campus school is a very different credit from one backed by a national network or a foundation with real reserves.
- Check 05
Educational occupancy, life safety, and accessibility
Schools are held to stricter egress, fire, and accessibility standards than office or retail. Converted buildings sometimes carry deficiencies that surface at the next inspection or change of tenant.
- Check 06
Any bond financing, purchase options, or rights of first refusal
School facilities are frequently financed with tax-exempt bonds through an affiliated entity, and leases sometimes give the school an option to buy. Both shape what a sale can look like.
Backfill risk
What happens if the tenant leaves
The tenant-goes-dark scenario
School buildings backfill better than their specialization suggests, because the most likely replacement tenant is another school. Demand for charter and private school space in many markets exceeds the supply of suitable buildings, and a campus with classrooms, a gym, a cafeteria, and an approved drop-off plan is difficult to replicate.
The reason a school leaves matters. A charter that is not renewed, or a private school that loses enrollment, usually leaves for reasons specific to that operator rather than the location. A school that leaves because the neighborhood's school-age population declined, or because a stronger competitor opened nearby, leaves a building with a demand problem that the next operator will also face.
Non-educational reuse is harder. Classroom corridors, gyms, and cafeterias convert awkwardly to office, and the parcel may be zoned in a way that permits schools but not commercial use. Larger campuses sometimes find their highest value as residential redevelopment, but that path runs through a rezoning.
The zoning and occupancy approvals are part of the asset. A school use permitted by special approval may not survive an extended vacancy, and a new operator will want to know that before committing.
Why this matters to you
Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.
Understanding it before you go to market is the difference between negotiating and being negotiated with.
Who sells to us
Situations we see most often
- Developer selling a stabilized build-to-suit charter campus
- Private school owner wanting capital out of the campus while continuing to operate
- Landlord whose charter school tenant is approaching a renewal decision
- Owner of a campus where the school closed or relocated
- Religious organization selling a school building after the school consolidated
Buy box
What we buy
- 01Charter and private school campuses, $3M to $30M
- 02Leased to schools and networks, or owner-occupied
- 03Charters approaching renewal
- 04Vacant and converted school buildings
Process
How selling to Dizposition works
Day 0
01Send us the property
Address, asset type, and the lease if there is one. That is enough for us to start.
- 02
We underwrite it
Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.
10 minutes
03You get a firm offer
In 10 minutes, with the math shown. You will know exactly how we got there.
As fast as 30 days
04Close on your timeline
As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.
FAQ
Selling a private & charter school
My charter school tenant's charter is up for renewal before the lease ends. How does a buyer look at that?
Carefully, and honestly. The renewal is the real credit event. We read the authorizer's reports, the academic and financial performance, and the enrollment trend, and we price the renewal risk rather than ignore it or assume the worst.
I own the school and the building. Can I sell just the real estate?
Yes. A sale-leaseback is a common way for a private school or network to fund expansion or pay down debt without leaving the campus. The rent needs to fit the school's budget, so we size it against real enrollment and tuition rather than against a target yield.
The school left and the building is empty. Who would buy it?
Usually another school. Classroom layouts, a gym, a cafeteria, and an approved drop-off plan are hard to create from scratch, so existing school buildings tend to find educational users. What matters is whether the zoning and occupancy approvals stay in place during the vacancy.
My school building used to be an office. Does that affect the value?
It can. Converted buildings often have less outdoor space, tighter circulation, and occupancy limits that constrain enrollment. None of that is fatal, but it narrows the pool of replacement schools if the current one leaves.
How long does it take to sell a commercial property to Dizposition?
You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.
Can I sell my property as-is?
Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.
Can I sell with a tenant in place?
Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.
What if my lease is short-term or about to expire?
Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.
Do I need a broker to sell to you?
No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.
What documents do I need to get an offer?
The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.
How do you determine your offer?
We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.
What are typical seller closing costs?
Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.
Will I owe capital gains tax when I sell?
Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.
Can I do a 1031 exchange?
Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.
Can I sell if I am behind on payments or facing foreclosure?
Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.
Can I sell a property I inherited or that is in probate?
Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.
What if there is environmental contamination?
Send it anyway. Environmental history is one of the most common reasons a conventional sale falls apart, and it is one of the reasons owners call us. We price the remediation and the residual liability into the offer rather than walking away at the Phase II.
Is there any cost or obligation to get an offer?
None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.
Markets
Top markets we buy private & charter schools in
Where the inventory is
23,201 U.S. establishments · Elementary and secondary schools
- 01Sell a private & charter school in California2,752
- 02Sell a private & charter school in Florida1,785
- 03Sell a private & charter school in New York1,766
- 04Sell a private & charter school in Texas1,621
- 05Sell a private & charter school in Pennsylvania1,140
- 06Sell a private & charter school in Illinois886
- 07Sell a private & charter school in Ohio843
- 08Sell a private & charter school in New Jersey809
- 09Sell a private & charter school in Georgia715
- 10Sell a private & charter school in North Carolina674
Sources: U.S. Census Bureau, County Business Patterns, NAICS 611110, 2023
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50 state markets
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10-minute offer
Ready to sell your private & charter school?
Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.


