Success Stories Archives - Page 2 of 2

In this school spotlight, we’re so proud to share how Charter School Capital helped Arizona College Prep Academy (ACPA), an Arizona charter school, finance their growth and expansion by providing the funding to purchase a new facility.

Arizona College Prep Academy

Planning, locating and securing facilities is challenging for most charter schools, as Arizona College Prep Academy in Tucson learned through experience.
The school opened in 1997 as an affiliate of AmeriSchools network and became an independent charter school in 2012. Growing and in need of a new facility, the school administrators were faced with unexpected challenges. Banks would not provide funding because they viewed Arizona College Prep as a new school and therefore a very high risk. Likewise, the school was ineligible for start-up school funds because it was a pre-established charter transfer. In an effort to find the resources they desperately needed, school officials contacted several third-party funding organizations. However, none came through. Enter Charter School Capital, the only organization with both the ability and desire to help.
“It was a blessing to find Charter School Capital,” says Freddy Mendoza, assistant principal at Arizona College Prep. “Working with them has been great. They have been very responsive, very communicative and very much about the school and the kids.” Introduced through the Arizona Charter School Association, the two organizations are happy to celebrate a multi-year partnership. Through this partnership, Charter School Capital has been able to help open doors for Arizona College Prep Academy.

The Challenge

The greatest challenge was finding a facility that met the school’s unique requirements. Most available commercial buildings are too large, too small or don’t meet code specifications for schools. Charter School Capital was able to offer not only financing for the building but expertise in charter school facilities planning as well.
“We couldn’t have even looked at a building like this without Charter School Capital,” says Mendoza. “They made deals available to us that wouldn’t have been otherwise. Once the deal was made, they were critical in helping us understand what we needed to do. Their team made it easy for us.”

The Solution

Charter School Capital provided the financing necessary to purchase the property and now leases that property to Arizona College Prep Academy.
Charter School Capital will retain ownership of the facility, alleviating the need for the school to spend time focused on building repairs and maintenance and instead focus on their mission – educating kids.

“We couldn’t have even looked at a building like this without Charter School Capital.”
~Freddy Mendoza
Assistant Principal, Arizona College Prep Academy

Results

Arizona College Prep will have the option to take ownership of the property in the future but for now, they appreciate the time to focus on their staff and students, making everyone comfortable in their new home and letting the community know the school is open for enrollment.
“Obviously this is a business deal and we look at the numbers but the focus keeps coming back to how we educate these students, which is what we value. Charter School Capital’s process of getting to know our school and what we’re about was great.”

Do you need to expand, renovate, or move your charter school? We’d love to support you. It’s our mission to help you educate more students, so we focus on providing products and services that enable you to meet – and exceed – both your growth and facility goals. When you succeed, we succeed—it’s that simple.

The Charter School Capital team congratulates IDEA Public Schools on winning the 2016 Broad Prize. The Broad Prize for Public Charter Schools is awarded to Charter Management Organization (CMOs) honors the public charter management organization that has demonstrated the best academic outcomes in recent years, particularly for low-income students and students of color.
The award is given out annually at the National Charter School Conference. It includes at $250,000 grant for college-readiness programs at schools run by the winning CMO.
IDEA Public Schools was founded in 2000. The brainchild of Teach for America alumni Tom Torkelson and JoAnn Gama, IDEA now serves 300,000 students at 51 schools across Texas.
Serving predominately low-income and Hispanic students, IDEA schools have delivered amazing results year-after-year. US News & World Report routinely ranks the CMO’s schools among the nation’s top 500. In addition, IDEA’s College Prep high schools rank in the top 1% of America’s Most Challenging Schools, according to The Washington Post. IDEA’s 2016 graduating class has an impressive 100% college acceptance rate.
IDEA’s founding and development was recently chronicled by author Richard Whitmire in his book, The Founders. Whitmire’s book documents the rise and best practices of the country’s most successful CMOs.

In June of this year, we announced a $500 million facilities fund, and the formation of American Education Properties (AEP), a collaboration between Charter School Capital, the nation’s leading provider of working and growth capital to charter schools, and American Infrastructure MLP Funds (AIM), a leading private investment firm specializing in real property, infrastructure and natural resources businesses.
We’re excited to announce that just months later, the first $75 million in charter school facilities funding has been distributed to 11 schools across six states as part of the $500 million in innovative charter school financing to meet schools’ demand for facilities.
The distribution of the first $75 million marks one of the largest charter school facilities financing deals to date. This investment supports facilities at nine schools in Arizona, Colorado, Florida, and Washington, D.C., which educate roughly 4,550 Imagine Schools students, as well as students at two charter schools run by independent operators in Arizona and California.
With growing enrollment and nearly one million students on charter school waiting lists nationwide, charter school leaders need to find facilities that meet their needs, both now and in the future. AEP launched in June of this year, addresses this increasing challenge.
AEP enables school leaders to determine their long-term facility needs and retain control of their buildings, so they can focus on their mission of educating our children. With facilities financing in place, charter schools can expand their enrollment and academic offerings with confidence, knowing they can access and maintain the facilities to sustain their ongoing programs and growth.
“We are supporting one of the top needs charter schools face – facilities,” explained Stuart Ellis, President & CEO of Charter School Capital. “Charter School Capital has committed more growth capital to support the movement and now we are able to ensure that charters have the best facilities to meet their educational goals. With $500 million to invest over three years, we are dedicated to providing charter schools access to the capital they need to thrive.”
“We are pleased to have an organization that focuses on charter schools supporting our efforts and mission,” said James McFadden, Vice President and Treasurer of Imagine Schools. “Having a landlord who partners with us and others in the charter school movement to support the growth of schools makes our collaboration more meaningful.”
Imagine Schools is one of the nation’s largest and most highly regarded charter school networks. Their unique, full-service model currently administers a single, multi-state “school district” with 67 schools across 11 states and the District of Columbia. With total enrollment at approximately 36,000 students, the network is larger than each public school district in Tacoma, Boise and Cincinnati. The model has been successful. Imagine was one of only three school districts in the nation to be named a “2013 National District of Character” by the Character Education Partnership for promoting positive character development in a school environment.
Charter schools often have difficulty accessing funding and affordable credit. Recently, Standard & Poor’s (S&P) downgraded the value of charter school transactions, and Fitch Ratings downgraded the value of charter bonds. With its committed pool of capital, AEP enables schools to get the funding they need when they need it, without strings or fluctuating interest rates. Charter School Capital facilitates all origination and sourcing, underwriting, asset administration and property management for the fund.
“At a time when many are turning away from the needs of charter schools, we look forward to putting more dollars to work for charters of all sizes that will enable school leaders to focus on what they do best – educating students – while alleviating concerns about their schools’ facilities,” said Ellis.
To find out how we can help you with your charter school’s facility needs, give us a call at 877-272-1001 or email us at GrowCharters@charterschoolcapital.com.

Desert Star Academy, a college preparatory charter school in Arizona, opened its doors this past Monday. The Arizona State Board for Charter Schools approved the academy’s charter school application for the 2014-2015 school year in February.
“It has been a day two years in the making,” said School Director and Principal Margie Montgomery. “We’re so excited to provide the community with a quality school incorporating a college preparatory curriculum.”
After working with the Charter School Capital team to receive vital start-up charter school funding, Desert Star Academy welcomed 82 student scholars on its first day. The charter school, geared towards kindergarten through sixth-grade students, recites their school’s Scholar’s Pledge each morning and has a combination of computers and tablets in every classroom.
“We’re thrilled to provide charter school funding to help Desert Star Academy finally open its doors to students,” said Frank Yanez, the Arizona Client Services Representative for Charter School Capital. “Not only is the Desert Star Academy staff an exceptional group of educators, but they’re very motivated to get every one of their students into college. Fort Mohave is lucky to have this resource for their kids.”

Last week, at the National Charter School Conference in Las Vegas, we announced an innovative $500 million charter school facilities program to help charter schools nationwide address one of the charter school movement’s biggest challenges – securing facilities that meet the growing needs of charter schools. The formation of American Education Properties, LLC (AEP) brings together Charter School Capital and investment firm, American Infrastructure MLP Funds (AIM) to help solve the growing facilities needs of America’s charter schools.
The offering is unlike any other facilities financing options available on the market today. Charter schools will now be able to determine their own long-term facility needs and maintain full control of their buildings. This represents a major improvement from the year-to-year lease renewals that many charter schools currently experience. By providing long-term facilities security and an investment partner interested in charter school expansion, charter schools now have the ability to expand their enrollment and educational offerings with confidence.
What does this mean to charter schools?

Charter schools now have the opportunity to provide the best facilities to match the needs of their educational programs as well as determine long-term facility needs while maintaining full control of their buildings.
Schools will be empowered with the flexibility to make choices about what to do with their space so it best suits their faculty, staff and student community.
Charter School Capital will work with all charter schools to facilitate the origination and sourcing, underwriting, asset administration, and property management.

Charter School Capital President and CEO, Stuart Ellis, noted, “The dramatic growth of charter schools – 13 percent in 2013 alone – makes it clear that facilities financing, which is already one of the industry’s largest challenges, will become an even more pressing issue during the coming years. In 2012, the National Alliance for Public Charter Schools (NAPCS) found that more than half of charter schools would outgrow their current facilities within five years. Collaborating with AIM in the formation of American Education Properties allows us to serve a broad array of charter schools nationwide by freeing-up resources that schools are then able to allocate to classroom instruction or other operational needs.”
The news has charter school advocates celebrating. “Nearly one million students nationwide are on charter school waiting lists. Charter school educators are eager to meet that demand. Fortunately, Charter School Capital has stepped up and created a solution to help parents,” states Caprice Young, President, Education Growth Group and founder and former CEO of the California Charter Schools Association. “These resources will open doors like never before! Public charter schools are now able to expand, offer new programs and customize their space to create the learning environment that best matches student needs.”
Nina Rees, president and CEO of the National Alliance for Public Charter Schools added, ” By providing charter schools security in their facilities, this effort helps lift a burden many schools face and will enable schools to focus, as they should, on their students and their academic results. School administrators will be better able to direct their scarce resources and time toward educating students rather than worrying about real estate needs.”
“We are pleased to be partnering with Charter School Capital on this important initiative,” said Bob Hellman, CEO of the American Infrastructure MLP Funds. “Our goal is to help solve America’s infrastructure needs with innovative capital solutions, and we believe that charter schools represent a critical and growing piece of this infrastructure puzzle. We look forward to working with schools and communities in need of secure, long-term facilities to provide the resources to help them continue to grow and thrive.”
Since we made this charter school facilities announcement, the availability of funds has been mentioned in several news media including the Portland Business Journal and Reuters.
What are your facility challenges? Has the inability to secure the right type of facilities impacted your charter school’s ability to enroll and educate more students in your community? Share your experiences with us below or email our team at GrowCharters@charterschoolcapital.com.

Trying to help students with disabilities learn is a tough job. To be successful, school administrators need to focus on educating students, not on charter school funding or operational issues. As a start-up charter school, Learning Path Academy, located in West Palm Beach, FL, found themselves in need of a charter school working capital solution, and turned to Charter School Capital.
Learning Path Academy focuses on students with learning and language disabilities who may struggle in the traditional public school system. After securing school facilities, school administrators were ecstatic to open their doors last August. They believed and planned on state funding, but quickly learned that funding was based on making expenditures that would be reimbursed.
“As we started operating, the implementation grant we received from the state of Florida informed us that we had to spend the money, and then we would be reimbursed,” explains Isis Rosso, co-founder and director of operations at Learning Path. “Our first check from the district was tiny. It was enough to pay the rent and clean the building, but we were basically working for free for three months. That’s when we called Charter School Capital.”
Charter School Capital was able to furnish the working capital Learning Path needed, enabling them to continue offering the special attention and customized learning plans to their students in need.
The school’s special system, which focuses on a low student-to-teacher ratio and staff experienced with special needs education, also asks for heavy involvement from parents and reports on student progress regularly. Because of this, families have been tremendously pleased with Learning Path and enrollment is on the rise. The fairly new school currently serves 118 students in grades Pre-K through 4th, and is already making plans to add 5th grade and grow their student enrollment to 192, the maximum allowed currently.
To address this anticipated growth, school administrators understand that sufficient and flexible capital must be available for them to accomplish their goals.
“Knowing that my budget is going to grow, and knowing that Charter School Capital can help fill in the gaps where necessary, is a huge sigh of relief,” concludes Rosso. “We have developed such a wonderful relationship with the Charter School Capital team. They have great patience and help us do what we’ve got to do. These are the people who are helping me build my dream school.”

Even the most successful organizations face difficulties when expanding, and charter schools in particular face extra challenges. Public funding is determined by current, not projected, student enrollment. Advances for capital needs can be difficult to obtain from traditional banks, particularly given the often unfair reputation charter schools have as risky investments.
This is the situation that faced I CAN SCHOOLS, an ambitious charter network based in Cleveland, Ohio, which overcame charter school funding issues with help from Charter School Capital.
Founded by eight local teachers in 2010, I CAN’s first campus opened serving grades K-8. The school was an immediate success, earning a “B” rating in its first year – the first charter school in Ohio to achieve that feat. But things weren’t easy. After operating two years in “survival mode” – as school co-founder and CEO Marshall Emerson III describes it – the school’s administration realized that additional help was needed to expand. So they turned to Charter School Capital.
“Banks don’t get it sometimes. They don’t get that we’re doing good for the community,” explains Emerson. “Charter School Capital was able to assist with advice and with the financial landscape. Moreover, they have been very willing to make connections and introductions that help us.”
The industry expertise Charter School Capital provided combined with working capital funds enabled I CAN to realize several goals in a short period of time. Now, the charter school network operates seven campuses serving approximately 2,200 students across Ohio, including three new campuses in Akron, Maple Heights and Canton that just opened in Fall 2013. Emerson states that the network’s rapid growth is rooted in a desire to serve more kids, in particular low-income and minority students that are at risk of dropping out.
“Students mentally drop out in 7th grade; they just stop going to class in 12th,” says Emerson. “The better foundation we can give them, the better students do in the long-term. That’s why we’re here.”
During the next decade, I CAN has an aggressive plan continuing its expansion in Ohio, and eventually entering additional states, all in partnership with Charter School Capital.
“We’re able to speak confidently now about growth thanks to Charter School Capital,” concludes Emerson. “We were able to pay off a lot of our bills and then fund our growth. It’s been a real blessing.”

Planning, locating and securing facilities is challenging for most charter schools, as Arizona College Prep Academy in Tucson learned through experience. The charter school recently held a grand opening celebration of it’s new facility that now accommodates classes and extra-curricular activities for nearly 125 students with room to grow.

Arizona College Prep Academy’s new facility in Tucson, Arizona was financed by Charter School Capital.

Arizona College Prep Academy opened originally in 1997 as an affiliate to AmeriSchools network and subsequently became an independent charter school in 2012. Growing and in need of a new facility, the charter school’s administrators were faced with unexpected challenges. Banks would not provide the charter school facilities financing because they viewed Arizona College Prep Academy as a new school and therefore high risk. Likewise, they were ineligible for start-up funds because they were a pre-established charter school transfer. In an effort to find resources they desperately needed, school officials contacted several third-party organizations. However, none came through. Enter Charter School Capital, the only organization with ability, knowledge and desire to help.
“We couldn’t have even looked at a building like this without Charter School Capital,” explained Freddy Mendoza, assistant principal and co-founder at Arizona College Prep Academy. “They made deals available to us that wouldn’t have been otherwise. Once the deal was made, they were critical in helping us understand what we needed to do. Their team made it easy for us.”
Charter School Capital provided the technical commercial real-estate knowledge and assistance in addition to the facilities financing necessary to purchase the property and then lease the property back to the charter school. Charter School Capital will retain ownership of the property, alleviating the need for the school to spend lots of time focused on building repairs and maintenance and instead focus on their mission – educating students.
“It’s rewarding to know that Arizona College Prep Academy stayed on mission and we were able to help them find a facility that matched their goals,” said Stuart Ellis, president and CEO of Charter School Capital. “The charter school is now in a new space that matches their educational mission and culture, providing stability for college-bound students for years to come.”
Students, parents, teachers, and the Tucson community are excited. The new building is perfect for the charter school’s needs and gives them room for continued growth. Last week the community gathered to celebrate the opening of Arizona College Prep Academy’s new facility. Alumni, educators, dignitaries, community representatives, students, family, and friends of the charter school joined together to recognize the milestone and mark the building as their own.

Alumni drew outlines of their hands and signed their names along a wall mural to support the strong future for Arizona College Prep Academy and its students. Olympic Gold Medalist, Chrissy Pernham was on hand to share her thoughts about the importance of education and perseverance. The charter school has a bright future with a great new space that will support them as they grow.
Congratulations, Arizona College Prep Academy. The Charter School Capital team wishes you all the best.

Consistency and community are critical to educational development. Those are the motivating principles behind Excel Prep, an in-demand charter school group in San Bernardino, California.
Chartered in 2009 with its first campus open in 2010, Excel Prep charter schools offer an excellent learning environment dedicated to helping K – 6 students, many from disadvantaged backgrounds.
Excel Prep stands out for offering a unique model in the charter world, a model that is based in a sense of community. Each campus is limited to 200 hundred students who wear uniforms to help them identify with one another. Teachers spend time with each student on campus daily and also speak with parents on a regular basis. Rules and practices are the same at each campus helping school officials maximize efficiencies as well as recognize patterns and identify issues early. The model has proven to be very successful, and the future is promising.
“I’m just truly excited about what’s about to take place,” says Antonette Sims, founder of Excel Prep. “I feel that from the beginning that there has been this sense of urgency, because I feel like there are a lot of kids falling through the cracks… I think that now we’re in this season that we have the right administration to pull off growth.“
Growth is exactly what is taking place. The school has added three campuses and several hundred students since 2010, evolving from a highly dedicated grassroots team to an organization that attracts top-quality educational professionals. But such rapid expansion has presented its own set of challenges.
“If it hadn’t been for Charter School Capital, we wouldn’t have been able to start this year…. We wouldn’t have had any start-up money… Keeping the doors open is thanks to Charter School Capital,” explains Sims. The charter school funding was a start and the partnership looks promising for the future as well. “l know that we have the system; I know we can duplicate it… So we’re definitely ready to expand.”
In addition to new campuses, Excel Prep is working to grow their program offerings, particularly for those kids who need “extra support.” Food, computer and uniform assistance are all starting to come together so that Excel Prep can enroll more disadvantaged students who require additional services.
“Our goal is to take kids from struggling areas and make sure that they have additional opportunities,” finished Sims. “We’re proud that we’re able to provide these kids with a zeal and a love for school.”