Though most HighMark charter schools are initially structured as a long-term lease, we understand that most charter schools want to own their facility. We too want this for the schools, understanding that ownership is in the school’s long-term best interest.
The initial lease structure allows our client schools to build two important things: (1) a history of credibility as a school, organization, and lessee, and (2) a fund balance. These two things, among other factors, are what creditors and investors look at when they decide whether or not they are going to lend your school several million dollars. New schools often do not have a track record or a fund balance, making it very difficult for them to own a facility from the get go. Often private capital as well as bond financing are simply unrealistic and thus unavailable.
However, with the help of HighMark, this does not mean that your school cannot be in a brand new facility from day one.
Generally, our schools will lease their building from HighMark for period of time, giving them the ability to build credibility and a fund balance. At 5, 7, 10, 15, and 20 years, however, schools are given purchase options. We offer purchase options at these different intervals in order to allow the school to buy the building when market conditions and school preparedness levels are most favorable.
Sound intriguing? CONTACT US today in order to find out more about how HighMark School Development can fulfill your school’s facility needs.