He writes:

Peter Greene reports on real estate transactions in the Florida charter industry, just one transaction that provides an insight into the financial interests getting rich by exploiting public dollars meant for education. Lots of millions changing hands, but nothing about children or education. This is the kind of “news” that makes my blood simmer.

It turned up as an item in the South Florida LBJ Business Journal, and the lead tells you just where we’re headed. The campuses of three charter schools in Broward County were purchased for a combined $49 million by a company in Boise, Idaho that specializes in charter school real estate investments.That just says a lot. Let’s look at some details.

The big deal involves–well, several companies. We’ve got AEP Charter Renaissance. These folks sold a school they bought back in 2017. That charter school was located in a former Target store in Tamarac that had been bought by an investment capital group and a development group for $6.3 million; AEP Charter Renaissance bought it for $22 million. That purchase was part of a two-school deal that merited this kind of language in industry blurbs:

Part of the Colliers team’s successful strategy required educating prospective buyers on each individual Charter Management Organization (CMO) and nuances of each charter school including charter terms, for this asset class considered a special purpose building. “This is a highly-specialized asset class which inherently requires a longer and more thorough phase of due diligence,” noted Colliers Senior Vice President and Education Services Group Member Achikam Yogev. “Because of the complexities, charter schools have traditionally sold individually and rarely as a portfolio, but the continued interest in this asset class has paved the way for more creative strategies and more complex deals being done on behalf of our clients.”

By “industry,” of course I mean real estate and investment, because none of this has to do with education. At any rate, AEP Charter Renaissance just sold that school (which has somehow shrunk to 85,233 square feet) for $26 million. AEP Charter Renaissance is managed by Charter School Capital, whose CEO and co-founder Stuard Ellis is based in Portland. They serve “charter school leaders, back-office/business service providers and brokers & developers” and they make a lot of money doing it. Also, “AEP” stands for “American Education Properties,” of which Ellis is also the CEO. FWIW, his degree from University of California, Berkley (1988), is in Political Economies of Industrial Societies. You can watch Ellis provide a history of charter school capital.

To learn more about the highly profitable news in the charter industry, open the link and read the rest of this post.