The School engaged Wye River Group in 2012 to assist it in the development and financing of a new $60 million facility in possibly the most difficult real estate development location in the United States. The School acquired an apartment building adjacent to its current campus facilities in a primarily residential and very affluent neighborhood and is converting it into instructional space, a performing arts center, gymnasium and office space.
Because of the protracted pre-development phase associated with purchasing the expansion property, developing plans and specifications and resolving all land use, neighborhood and permitting issues, the School required an interim financing vehicle to fund approximately $16 million of pre-development costs and preserve the flexibility under Federal tax law to refinance such costs into a permanent tax-exempt bond issue. That credit facility was implemented in 2012. The School also desired to structure a two series bond financing, each for approximately $30 million with one serving as permanent debt and the other as bridge financing of a Capital Campaign. The School’s bond issue and bridge financing were completed in early 2016.