EPR Properties Sells Charter School Portfolio for $454M

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KANSAS CITY, MO—EPR Properties has sold just about all of its charter school assets for $454 million to a fund sponsored by Rosemawr Management, LLC. The portfolio consists of 47 charter school related assets, except for three charter schools the REIT recently sold for $21.6 billion and one remaining school that is expected to sell in the fourth quarter.

EPR Properties is exiting the market as it began to have difficulty competing with financing alternatives for charter schools, namely the tax-exempt bond market. However, the REIT has no plans to sell its private school and early childhood education assets that are included in its Education portfolio; although it notes that it is willing to consider strategic dispositions if such opportunities present themselves.

A Focus on Experiential Real Estate

This portfolio sale kicks off the REIT’s shift in focus to its experiential real estate, which ultimately will include casino resorts. Indeed, part of the company’s plans for the proceeds of this portfolio sale will be investment in casino resorts.

Experiential real estate represents an estimated $100 billion market opportunity, according to president and CEO Greg Silvers.

The REIT will also no longer organize its portfolio around the segments of Entertainment, Recreation and Education. Going forward its experiential portfolio will be organized by the primary property types in experiential real estate: Theatres, Eat & Play, Ski, Attractions, Experiential Lodging, Gaming, Fitness & Wellness, Cultural and Live Venues.

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