Torah Academy Buys Foreclosed Montessori School

BOCA RATON, FL-Palm Beach County’s education real estate sector saw some activity at the end of 2011. Torah Academy in Boca snapped up a 17,000-square-foot facility from Zions First National Bank for $1.5 million.

Daniel Kaskel, partner at the law firm of Sachs Sax Caplan, represented the Torah Academy on the deal. The building sits on 2.5 acres of land at 3881 NW Third Ave., 300 feet from the school’s existing campus on Spanish River Boulevard. The sale also included existing school equipment, furniture, books and computers.

“This site was formerly a Montessori school,” Kaskel tells GlobeSt.com. “We do not know exactly why the school defaulted. Ultimately its lender, Zions Bank, foreclosed. We got into the picture after the bank obtained title through foreclosure and sought to sell the property.”

Zions Bank foreclosed on the property in 2010 and acquired title in August, 2011. The most recent sales price of the property was $3.8 million in 2006. Kaskel says the expansion will allow the school to significantly increase its student body, particularly in the early childhood and middle school grades.

Funding for this acquisition came from Legacy Bank of Florida, as well as private foundations and pledges from family members and supporters of Torah Academy. Kaskel completed the transaction in 48 days.

“Funding for non-profit schools is available, but not easily obtained,” Kaskel says. “In our case, Torah Academy has a supporter with a significant banking relationship with a local, community bank and opened the doors. This particular property, selling at less than 40% of the last sale price, was a good investment for the lender, Legacy Bank of Florida.”

Kaskel believes Torah Academy acquired the asset at less than market value. The sales price was $1.5 million and the property appraised at just more than $1.6 million.  

“There are other attributes and benefits that enter the equation,” Kaskel says. “The site is properly zoned for school use. Having previously been used as a school, the buildings do not need to be reconfigured. The purchase also included school furnishings and equipment. This campus presented a tremendous value and opportunity for Torah Academy.”