Beloit-based Hendricks Commercial Properties has purchased the 112-acre St. John's Northwestern Academies campus in Delafield in a sale-leaseback transaction.
The deal, which includes the St. John's Northwestern Golf Course, allows St. John's Northwestern Military Academy to invest more in its operations and Hendricks to pursue development on lands not occupied by the academy, according to a news release.
Hendricks bought the sprawling property for $7.78 million, according to state records. The land is located in an area north of Main Street, south of Oakwood Drive and west of Genesee Street.
Under the terms of the lease, the academy will maintain control of the main campus for 40 years, including a 10-year initial lease plus six five-year options. It also has the right to buy back the main campus during that time.
"Adding St. John’s Northwestern Academies to our portfolio will allow Hendricks Commercial Properties to expand its footprint in and around downtown Delafield," Rob Gerbitz, president and chief executive officer of Hendricks, said in a statement. "In the next year, the company will start working on comprehensive plans to develop ancillary land not needed for Academy operations."
St. John's said the transaction allowed the academy to completely pay off its debt with $2 million left over for academy operations.
"This opportunity will allow St. John’s Northwestern to strengthen its financial position and improve our infrastructure, while focusing on our primary mission of educating future leaders,” Mike Henn, chair of the St. John's board of trustees, said in a statement. "This is a purely financial transaction that will enable the Academies to conduct operations going forward, just as we have in the past, with the added plus of eliminating all of our debt."