News Summary
Léman Manhattan Preparatory School has settled a long-standing rent dispute with Wolfson Group after a rent strike that began in June. Following the resolution, the school received a $40 million investment from Collegio Partners, enhancing its financial position. With record revenue and improved student retention, Léman Manhattan solidifies its status as NYC’s only boarding school, catering to over 700 students. The school aims to grow amidst rising tuition costs and socio-economic divides.
New York City – Léman Manhattan Preparatory School has successfully resolved a rent dispute with its landlord, Wolfson Group, after conducting a rent strike since June 2023. The school has since settled the matter by paying back all its overdue rent and has made an equity contribution under a newly amended lease agreement.
In addition to settling the dispute, Léman Manhattan has secured a significant financial boost. The school has received a transformational investment of $40 million from private equity firm Collegio Partners, brandishing a new debt-free balance sheet. This investment is expected to enhance the school’s growth prospects and support its educational initiatives.
As a result of these developments, Léman Manhattan is reporting record net revenue and improved student retention rates. The school occupies 200,000 square feet within a one-million-square-foot, landmark building at 25 Broadway in the Financial District, making it the largest tenant in the structure. The building, developed in 1921, previously struggled with a 30% vacancy rate after tenants like WeWork and Teach for America moved out four years ago. However, this rate has now improved to 11% following the resolution of Léman’s rent issues and subsequent payments.
Credit-rating agency KBRA has reported that the owner of the property is current on a significant $250 million mortgage, which is currently in special servicing. This loan has been extended through July 2026, with options for a potential six-month extension. The property’s appraised value stands at $284 million, indicating its substantial worth despite previous occupancy challenges.
The investment from Collegio Partners has garnered praise, recognizing Léman Manhattan as a compelling educational institution with a foundation of excellence. The school’s head, Maria Castelluccio, has indicated that this partnership will further advance their educational programs and initiatives, vital for the institution’s growth.
Léman Manhattan Preparatory School is notable for being New York City’s only boarding school, accommodating over 700 students, including around 100 who reside on campus. By providing urban experiences and access to cultural resources, the school aims to enrich its students’ educational journeys in one of the world’s most vibrant cities. The tuition for attending Léman is approximately $68,000 annually, with additional fees for room and board.
The financial developments surrounding Léman come amid rising tuition costs across Manhattan’s schools, leading to increasing socio-economic divides among families seeking quality education for their children. The school’s administration has expressed its commitment to fostering a mutually beneficial relationship with Wolfson Group moving forward. This resolution not only solidifies Léman Manhattan’s financial footing but also positions it for future growth in a competitive educational landscape.
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Additional Resources
- Crain’s New York: Léman Manhattan Ends Rent Strike
- Wikipedia: Special Servicing
- New York Times: NYC Private School Tuition
- Google Search: Tuition Costs in Manhattan
- Crain’s New York: Léman Manhattan Defaulted on Lease
- Encyclopedia Britannica: Educational Institution
- Business Insider: Léman Manhattan Prep – NYC’s Only Boarding School
- Google News: Léman Manhattan Prep
