SB Friedman facilitated the closing of a $16 million New Markets Tax Credit (NMTC) financing supporting the construction of a new 31,000-square-foot van Otterloo Campus for Learning and renovation of a vacant 6,200-square-foot building for the Monaghan Family Early Childhood Education Campus, addressing the growing need for education services in the community.
The van Otterloo campus includes early childhood education classrooms, a music and art room, cafeteria, library, playground, and dedicated space for Guadalupe Center’s High School and College Tutor Corps programs. The Monaghan renovation added six critically needed classrooms for children ages 0 to 3. The project supports Guadalupe Center’s innovative model of providing educational opportunities for students from infancy to second grade as well as employment and college readiness services for high school and college students.
SB Friedman partnered with Guadalupe Center to ensure its high-impact project maximized the benefits of NMTCs. SB Friedman’s role included:
- Assembling a total of $16 million of NMTC allocation from two Community Development Entities (CDEs) with national footprints;
- Securing significantly above-market equity pricing from the NMTC Investor;
- Structuring NMTC financing to take advantage of two project locations that had different construction timelines;
- Negotiating waivers of standard bonding and flood insurance requirements from the CDEs and NMTC Investor to save significant closing costs; and
- Providing post-closing support around compliance and other NMTC obligations.
Results: With SB Friedman’s guidance through the NMTC process, Guadalupe Center was able to complete both facilities without deep value engineering and scale up operations quickly when the facilities opened. The project is complete.