SB Friedman helped secure and structure $28.7 million in leverage debt and construction-to-perm loans, as well as $42.5 million in NMTC allocation for the Academy for Global Citizenship’s (AGC’s) new cutting-edge campus on Chicago’s Southwest Side. AGC is a single-site public charter school providing a dual-language International Baccalaureate curriculum to a primarily disadvantaged student population that is over 90% minority.
The new campus will include a 70,000-SF Net Energy Positive school building with space for K-8 education, an early childhood center, and an FQHC health clinic operated by Esperanza Health Centers. Constructed in accordance with the International Living Future Institute’s Living Building Challenge standard, the project will be one of the most sustainable buildings ever constructed in the Midwest climate zone. With a strong focus on environmental sustainability, the school aims to use the building as a living laboratory and educational tool integrated into its curriculum. A 3-acre urban farm at the site operated by Urban Growers Collective will provide fresh produce for student meals and enhance healthy food access for the neighborhood. The 6.2-acre brownfield revitalization is also the catalytic lead project in a 40-acre redevelopment that will bring mixed-income housing and retail to the former Chicago Housing Authority LeClaire Courts public housing site. SB Friedman played an integral role in maximizing the benefits of NMTCs to support this highly impactful project, including:
- Assisting the project sponsor, AGC, in structuring the project and assembling the non-NMTC financing necessary to complete the building;
- Assembling a total of $42.5 million of NMTC allocation from four CDEs;
- Negotiating and obtaining above-market NMTC equity pricing;
- Assisting with the execution of the closing process to maximize efficiency; and
- Providing post-closing support around compliance and other NMTC obligations.
Results: With SB Friedman’s involvement, the AGC team was able to navigate the complexities of NMTCs to ensure the campus adequately addresses the needs of students and community members. In this process, we worked closely with AGC as they navigated a highly complex capital stack and rising construction costs due to the pandemic. Construction of the project commenced in Spring 2022 with a Summer 2023 target for completion.
Image Source: SMNG A; Farr Associates