SUCCESS STORIES
HOUSTON COMMUNITY COLLEGE, HOUSTON, TEXAS
Situation:
The Houston Community College System of Houston, Texas (HCC) desired to amend its current operating lease with respect to the land and buildings (the project) that comprise its Northwest Campus to provide for an option to purchase the project. Previously, HCC wanted to continue occupying the project on a long-term basis, but based on its current operating lease, would not realize equity benefits.
Solution:
TOur solution was to acquire the project from the owner and amend the current operating lease of HCC to a capital lease using a lease-purchase solution. The net result of the transaction provided a sale of the project to a special purpose corporation created by Public Realty Capital with the resulting amended lease approved and executed by HCC. Ownership of the project will then transfer to HCC at the end of the lease term.
Lessor: HCC-TC, LLC ( a Public Realty special purpose corporation)
Lessee: Houston Community College System
Project: The Northwest Campus is located on an 11.87 acre site comprised of 154,000 gross square feet of rental space. In additional to normal campus functions, HCC intends to incorporate administrative offices, instructional facilities, and provide storage needs.
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