Pioneer Preparatory School: A Challenge Foundation Academy

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.