On September 28, 2023, the Company purchased a 90,000 square foot property located at 311 Veterans Highway, Levittown, Pennsylvania for approximately $10.2 million. The Company expects to invest approximately $17.0 million 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. Furthermore, the Company plans to sell the property in the coming months to recover the purchase price and simultaneously enter into a leaseback agreement for approximately 20 years. This property is currently classified as held-for-sale on the Condensed Consolidated Balance Sheet.

The Company has served the Philadelphia, Pennsylvania area at its current campus located at 9191 Torresdale Avenue for more than 60 years. The new Levittown, Pennsylvania campus is expected to open in the first quarter of 2025 and is not expected to impact the student experience at the existing campus at 9191 Torresdale Avenue which today serves about 250 Automotive Technology students. The existing campus will continue to operate until the buildout at the new location is fully complete to ensure a seamless transition. The new and significantly larger campus is projected to have an average population of approximately 600 students providing educational opportunities for students from Philadelphia, points north in Pennsylvania, as well as neighboring Trenton and Camden, New Jersey. Additionally, the facility will have the extra capacity to accommodate several potential industry partners and future program expansions.

On September 24, 2021, Nashville Acquisition, LLC, a subsidiary of the Company, entered into a Contract for the Purchase of Real Estate (the “Nashville Contract”) to sell the nearly 16-acre property located at 524 Gallatin Avenue, Nashville, Tennessee 37206, at which the Company operates its Nashville campus, to SLC Development, LLC, a subsidiary of Southern Land Company (“SLC”).

On June 8, 2023, the Company closed on the sale of its Nashville, Tennessee property to East Nashville Owner, LLC, an affiliate of SLC, for approximately $33.8 million pursuant to the Nashville Contract. The net proceeds from the Nashville sale, net of closing costs, are available for working capital, acquisitions, other strategic initiatives, and general corporate purposes. In connection with the sale, the parties entered into a lease agreement allowing Lincoln to continue to occupy the campus and operate it on a rent-free basis for a period of 15-months plus options to extend the lease for up to three consecutive 30-day terms at $150,000 per extension term. The carrying value of the campus is approximately $4.5 million and the estimated fair value of the rent for the 15-month rent-free period is approximately $2.3 million, which is currently included in prepaid expenses and other current assets on the Company’s balance sheet.