Business
Lincoln Educational Services Completes the Sale-Leaseback of Newly Acquired Levittown, PA Facility
Parsippany, NJ, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ: LINC), a national leader in specialized technical training
About this update from Lincoln Educational Services Corporation
[{"type":"text","content":"Parsippany, NJ, Feb. 01, 2024 (GLOBE NEWSWIRE) -- Lincoln Educational Services Corporation (NASDAQ: LINC), a national leader in specialized technical training for more than 75 years, has entered into a sale-leaseback agreement for the property located at 311 Veterans Highway, Levittown, PA. As previously reported, the Company purchased this 90,000 square foot facility in September 2023. The facility will be the future home of Lincoln Tech’s Philadelphia campus, which is being relocated from its current location at 9191 Torresdale Avenue in Philadelphia, where it has been in operation for more than 60 years. With this move, the campus will be able to offer additional career training programs and accommodate more students. The sale transaction is for an aggregate purchase price of approximately $11 million. Simultaneously with the closing of the sale, the Company and the purchaser have entered into a triple-net lease agreement pursuant to which the property is being leased back to Lincoln for a twenty-year term. The lease agreement includes $2.5 million in a tenant improvement allowance. The Company expects to invest approximately $15 million, net of the tenant improvement allowance, in the buildout of new classrooms and training areas to ensure a best-in-class campus that provides a positive experience for students, faculty, and industry partners. Students training at the new campus will go on to launch new careers in the Automotive, Welding, HVAC, and Electrical industries throughout the greater Philadelphia area. \"Since our Philadelphia campus first opened its doors in 1962, employers across the area have known that they can turn to Lincoln for highly qualified, trained automotive technicians,” said Scott Shaw, Lincoln’s President and CEO. “We’ve also known there is a demonstrated need for trained welders, electricians, and HVAC professionals. When the new campus opens in Levittown, we’ll be able to support employer demand in these industries as well. What’s more, the sale-leaseback provides additional capital to fund program replications and new campuses as we seek to fill the skills gap that exists in our country.” The new campus is expected to begin offering classes in the second half of 2025. Students enrolled at the Torresdale Avenue location at that time will be able to complete their program without interruption. While ...