News: Valuation of Charter Schools
August 10, 2009
The charter school movement has taken root throughout the nation and is playing an important and innovative role in American education. Appraisals are often required as part of a lease negotiation, establishing operating budgets and net worth statements, facilitating finance or establishing a cost basis for highly specialized programs, such as New Market Tax Credits.
Richard Polton of Value Research Group recently published an article on the valuation of Charter Schools in the Appraisal Journal, the publication of the Appraisal Institute in Chicago, Illinois. The Appraisal Journal is a national publication and is considered the journal of greatest significance in the real estate valuation field.
This article considers the special real estate issues associated with an appraisal assignment of a charter school. These issues are different than mainstream of conventional educational real estate. Charter schools have time limitations on their charter, and are located in a wide variety of settings, tenure types, and ownership structures. Their history and operating characteristics are an essential part of the analysis and this article give important background. The articles is designed to help the appraiser to apply the appropriate methodologies and the charter school participants to understand real estate issues.