Challenges & Opportunities

Patient Capital

Unlike a private party that must finance the acquisition of land and/or pay taxes for its ownership, state trust land managers have little or no carrying costs associated with the continued ownership of a trust parcel. This allows these managers – alone or in partnership with private entrepreneurs – to reach development objectives that are difficult to achieve through private sector ownership, for example, planning and holding onto parcels for eventual commercial development while waiting for the necessary levels of residential development. This "patient capital" characteristic of state trust lands – holding land for urban development for the longer term rather than selling it for short-term gains – may under certain circumstances produce great financial gains for school trusts.

For more details on patient capital and school-trust real estate programs:

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