KIPP Bay Area Public Schools
Location: Oakland, CA and San Jose, CA
Enrollment: Network: 5,700; Obligated Group: 1289
Loan Amount: $16 million to refinance school facility construction
School Savings: ~$5M over 30 year term
Founded in 2002, KIPP Bay Area Public Schools (KBAS) operates 15 schools spanning grades K through 12 in educationally underserved areas of San Francisco, Oakland, San Lorenzo, San Jose, Redwood City, and East Palo Alto. KBAS is on a mission to disrupt inequities in educational access and outcomes and provide tools and guidance for students as they develop the knowledge, skills, and character essential to thrive in college, shape their futures, and positively impact the world. 94% of KBAS alumni graduate from high school and 84% of alumni matriculate to college.
CIF provided a $16M loan to refinance construction of two new school facilities — a 30K square foot facility to house KIPP Heritage Academy in San Jose and a 17K square foot annex to accommodate enrollment growth at KIPP Bridge Academy in Oakland. CIF provided a 30-year fixed rate, fully amortizing loan that will save KIPP Bay Area approximately $5M compared to the bond market alternative.
“Our experience working with CIF was our first loan of this size. We were working on a tight timeline, and the CIF team made the process seamless for us from diligence to loan close, collaborating with us through the typical challenges encountered during the loan process. CIF partnered with us to put in place a flexible permanent legal structure that will enable us to achieve our long-term real estate goals in the San Francisco Bay Area. Ultimately, CIF offered exceptional terms, eliminating interest rate risk with low transaction costs and flexible terms. Closing this loan efficiently means we can get back to the incredibly important work of running high-quality schools so that our students can lead choice-filled lives with purpose and passion.”
– Cory Harris, Managing Director of Finance