Lincoln Educational Services Completes the Sale-Leaseback of Newly Acquired Levittown, PA Facility
February 01 2024 - 8:30AM
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 the current campus can accommodate 250
students, the new facility will have more than triple that capacity
with room for additional expansion.
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About Lincoln Educational Services Corporation
Lincoln Educational Services Corporation is a leading provider
of diversified career-oriented post-secondary education. Lincoln
offers recent high school graduates and working adults
career-oriented programs in five principal areas of study:
automotive technology, health sciences, skilled trades, information
technology, and hospitality services. Lincoln has provided the
workforce with skilled technicians since its inception in
1946.
Lincoln currently operates 22 campuses in 13 states under four
brands: Lincoln Technical Institute, Lincoln College of Technology
and Euphoria Institute of Beauty Arts and Sciences. Lincoln
also operates Lincoln Culinary Institutes in both Maryland and
Connecticut.
For more information, go to lincolntech.edu.
Peter Tahinos
Lincoln Educational Services
862-250-3339
PTahinos@lincolntech.edu
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