The new loan replaces approximately $642 million borrowed in 2021 that recently became due. Goldman Sachs provided the new financing, allowing NRT to repay the previous loan and continue owning the properties.
The portfolio stretches across 37 states and covers approximately four million square feet. It generated more than $85 million in annual operating income as of March, compared with approximately $42 million in yearly loan payments.
The brothers entered the education business in 1996 when they joined Jewish billionaire Larry Ellison to create Knowledge Universe. The company eventually controlled KinderCare and became one of the world’s largest private education businesses.
They sold KinderCare’s operating company to Swiss investment firm Partners Group in 2015, but their real estate business retained hundreds of the buildings. KinderCare continued operating its childcare centers and paying rent to NRT, which Lowell Milken now chairs.
The $650 million loan allows the Milken brothers to maintain one of America’s largest collections of early childhood education properties.