Properties

Pioneer Preparatory School: A Challenge Foundation Academy

$9,000,000

Purchase, Construction, Lease, and Refinance with Carryback Note

PHOENIX, ARIZONA

+650 Seats of Choice

Pioneer Preparatory School began in a nearby Boys and Girls Club in which each teacher had to manually put up and took down an entire classroom every day while the school’s new building was constructed across the street. The land on which Pioneer was built was donated by a local real estate investor, but CFP provided consultation, management of the construction, and financing for the building. Pioneer leased the facility from CFP for 7 years with lease payments low in years one and two and slowly increasing over the subsequent three years of the initial lease, allowing Pioneer to grow its program and enrollment at a sustainable rate.

In 2017, Pioneer had grown sufficiently in enrollment, academics, and financial position to secure local bank financing to refinance the building and buy out CFP. CFP currently holds a second position lien for a $2.7 million carryback note on the facility. The note is held at 7% APR, interest-only, and will come due in 2026.

AT THE BEGINNING

Start Date: 2009
1st Year Enrollment: 82
1st Year Grades Served: K, 1, 2
94% ELL
Avg Community School Accountability: “B”

NOW

Current Enrollment: 650 + Waitlist
Serving Grades: K–6
State Accountability: “C” (2017)

PROJECT STATUS

Building construction was completed in 2010.
Pioneer refinanced the property in 2017. CFP currently holds a $2,700,000 carryback note.

FUTURE NEEDS

Pioneer plans to refinance the bank loan and carryback note within a 10-year period in order to pay off the carryback note in full. Pioneer is at full capacity for its current building. Any future enrollment growth would require additional facilities.