Item 2. Properties
ITEM 2. PROPERTIES
American Public Education, Inc., or APEI, and American Public University System, Inc., or APUS, together operate administrative facilities in Charles Town, West Virginia, Manassas, Virginia, and Baltimore, Maryland, which are within an approximate one-hour drive of one another and are located within the Baltimore-Washington metropolitan area. The corporate headquarters and administrative offices are located in Charles Town and consist of nine owned facilities totaling approximately 227,000 square feet. Also in Charles Town, APUS owns two and a half acres of land earmarked for future development. APUS’s student services, graduation, and marketing operations are located in 25,000 square feet of leased space in Manassas under a lease, originally scheduled to expire in June 2023. In August 2020, APUS exercised its early termination right pursuant to the lease, modifying the term of the lease to expire in June 2021. APEI’s administrative offices also include approximately 3,000 square feet of leased space in Baltimore, Maryland under a lease that expires in 2022.
Hondros College of Nursing, or HCN, has five campuses in Ohio, which are located in the suburban areas of Cincinnati (West Chester), Cleveland (Independence), Columbus (Westerville), Dayton (Fairborn), and Toledo (Maumee), and an administrative office located in suburban Columbus. In addition, in May 2019, HCN entered into a lease agreement for a new campus location in Indianapolis, Indiana, which opened in April 2020. These campuses and administrative office include a total of ten leased facilities with approximately 142,300 square feet combined. The facilities are primarily used for instructional activities. HCN’s corporate offices are located at an administrative facility near the Westerville campus with additional offices at the Westerville campus. Lease terms and extension options vary by facility, with expiration dates ranging from 2023 to 2029.
In December 2020 HCN entered into a lease agreement for a new campus location in Akron, Ohio. The lease term begins in April 2021 for an 87-month period expiring in June 2028, with four additional optional five-year renewal terms. The total value of the minimum rental payments for the initial term of the lease is approximately $2.5 million.
We believe our existing facilities are in good operating condition and are adequate and suitable for the conduct of our business.
ITEM 3. LEGAL PROCEEDINGS
From time to time, we have been and may be involved in various legal proceedings. We currently have no material legal proceedings pending.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
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