RSG was retained by Los Angeles County to assist the Compton Unified School District (School District) and the County to evaluate potential public-private partnership options for redevelopment of a closed elementary school campus near the Martin Luther King Jr. Medical Center and Charles Drew University. After a developer was selected, RSG analyzed the ground lease structure proposed by the developer, and the financial feasibility of the proposed project. RSG’s analysis included estimating the developer’s internal rate of return (IRR) and the net present value of the projected cash flow to the County and School District from the upfront rent payments and the annual participation rents through 10 years of project stabilization.
