Brookhurst Development Corporation is considered the foremost authority on lease-leaseback financing and development in the country.  Lease-leaseback is a form of public-private partnership (P3) delivery wherein government retains legal ownership of the site while leasing it to a developer. The developer obtains financing, hires design and construction firms, then builds the facility. Upon completion, the facility is leased back to the public entity under a long-term facility lease.

BDC’s proprietary lease-leaseback program brings many benefits, which include, but are not limited to:

  • BDC procures all project financing. No bond referendum is needed.
  • BDC can access low-cost, tax-exempt financing at rates comparable to the government tenant, which results in low occupancy costs.
  • A fully transparent process, with all fees for services meeting market reasonableness standards and no hidden profits.
  • All financing and construction cost overrun risks are transferred to BDC. Public agency only begins to pay rent upon successful project completion and occupancy.
  • The public agency can prepay and terminate the lease anytime after completion without penalty.
  • Project delivery is significantly expedited, thus saving millions in potential cost escalation.
  • Depending upon the project, Brookhurst can provide long-term operations and maintenance of the facility (DBFOM delivery).
  • Our project team is highly experienced with a successful track record.

BDC was the first developer to finance and develop a public school pursuant to a true lease-leaseback delivery.  This project, the Inderkum High School for the Natomas Unified School District in Sacramento, was ground-breaking in that Brookhurst procured $66 million bearing an interest rate of only 1.6%, almost 300 basis points below the District’s bond rate. The District held no project risk, and the school came in ahead of schedule with a two million dollar savings in cost to the District.

BDC’s senior executives have worked with state legislatures on enabling lease-leaseback legislation, assisted state agencies in setting lease-leaseback policies, and our CEO, Jeff Baize, is a recognized expert on lease-leaseback delivery in the California court system. In addition, Mr. Baize co-authored the only definitive book on public school construction “School Facilities Planning: A Guide to Laws and Procedures for Funding, Siting, Design and Construction” (Solano Press) wherein he authored the chapter on lease-leaseback delivery.