Access to adequate facilities is one of the biggest challenges charter schools face today. With more than 1 million students across the country on charter school waitlists and the fact that many charters operate in suboptimal buildings, the lack of facilities is a serious obstacle to charter growth.
As a result, charter leaders asked us to help solve their charter school facilities problem. While bonds are available, most charter schools won’t qualify, with roughly only 12% of charter schools able to access bond financing. That leaves 88% of charter schools that need an alternative source of financing. In 2014, our team secured an initial $500 million pool of capital earmarked for long-term charter school facilities financing with the goal to aid charters in accessing state-of-the-art facilities for the long haul.
Our facilities financing product is a long-term lease that finances 100% of your total project cost. Our lease product allows schools to access funding through all stages of growth – from start-up to expansion through maturity. Our transparent lease terms mean that there are no artificial incentives to seek refinancing – another great benefit. As a long-term partner, our team carefully evaluates each school’s existing reserves and percentage of revenue that can be committed to supporting facilities.
Why long-term lease financing?
- 100% financing
- Retain control of your facilities
- Ensures long term affordability
- Enhancements of existing buildings and ground-up construction
- Tenant improvements included in financing
- Customized to school specifications (blended learning model, traditional, etc.)
- Can also finance FF+E and ramp-up support
- Works alongside, bridge to or combined with bonds
We currently own 41 school properties in 11 states, more than $450 million in assets. Schools range in attendance from 135 to 1,200 students with educational programs that include college preparatory, art-focused, STEM schools, and others. Our goal is to aid charter leaders so they have accessible, flexible financing options to meet their schools needs today and the needs they have in the future.
If you need help with charter school facilities expansion, financing, site design and selection, or facility development, our team of experts is here to help you with a needs assessment. Please fill out the form below and a team member will get back to you soon. In addition, take a moment to view and download all the great content from our webinar series.