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Press Release

Build NYC Closes Over $200 Million Tax-Exempt Bond Financing Transaction with KIPP NYC Public Charter Schools

Feb 09 2023
NYC Construction. Photo by Drew Angerer/Getty Images.

The Charter School Network Will Use the Bonds to Build a New Seven-Story Education Facility in the Bronx, Eventually Serving 1,400 Students

Build NYC Resource Corporation Closes Largest Transaction to Date

NEW YORK, NY—New York Economic Development Corporation (NYCEDC) announced Build NYC Resource Corporation (Build NYC) has closed on a $209.25 million tax-exempt bond financing transaction with Canal West 75, LLC—an affiliate of KIPP NYC Public Charter Schools. Build NYC helps 501(c)(3) organizations and other exempt facilities make real estate capital investments by accessing low-cost debt through tax-exempt bond financing.

The transaction was Build NYC’s largest to date. The charter school network will use the bonds to build a seven-story educational facility in the Mott Haven neighborhood of the Bronx. The 150,000 square foot building will act as the permanent home of KIPP NYC’s second high school program. The new building will also feature a high-performance HVAC system to ensure air quality, a commercial kitchen to produce healthy meals for students, specialty science labs, among other amenities. Construction is expected to be complete in time for the 2025-2026 school year.

This facility will allow KIPP NYC to serve a total of 2,800 high school students in New York City, offering it the opportunity to increase its lottery acceptance and positively impact the lives of more predominately Bronx-based children.

“We are excited to work alongside KIPP NYC, to help bring their second high school that will provide more children in the Bronx with access to classrooms, state-of-the-art science labs, and opportunities that will put students on the path to lifelong success,” said NYCEDC President and CEO Andrew Kimball. “Build NYC is constructing a stronger and more equitable future by expanding access to education, health services, and infrastructure, to New Yorkers across the five boroughs. These bonds will provide space for quality education that offers students access to a safe, supportive, and rigorous learning environment.”

“KIPP NYC is excited to move forward with this project which will bring expanded academic opportunity to more children in the Bronx and will build on the incredible work of our existing K-12 schools in the Bronx,” said Alicia T. Johnson, President at KIPP NYC. “We’re beyond grateful to the Bronx community and our partners at Build NYC Resource Corporation for their support and look forward to the building’s grand opening ahead of the 2025-2026 school year.”

“I am excited to welcome a permanent home for KIPP NYC’s second high school program to the Bronx,” said Rep. Ritchie Torres (NY-15). “It will provide a unique educational and academic experience to students, allowing them to gain access to high-quality facilities, resources, and opportunities – particularly around STEM. Every student deserves a safe and supportive learning environment regardless of where they live, and I’m glad to have a partner in KIPP NYC that’s helping us accomplish this goal for future generations.”

“It is our pleasure to welcome KIPP NYC Public Charter Schools to the South Bronx and District 8. I am grateful that we share the vision of expanding educational opportunities for students throughout the community,” said Deputy Speaker Diana Ayala.

KIPP NYC operates a network of 18 public charter schools in the Bronx, Brooklyn, and Manhattan, which educates students in kindergarten through grade twelve. The charter school network is known for its diverse student body—close to 100% of students come from minority groups, and approximately 90% of students qualify for federal free or reduced-price lunch—as well as its strong educational attainment, which includes a 97% high school graduation rate.

Build NYC is managed by NYCEDC. Tax-exempt bonds issued through Build NYC can offer several benefits to borrowers, including:

  • Lower Interest Rates: Tax-exempt bonds typically offer lower rates than other types of loans.
  • Mortgage Recording Tax Waiver: The 2.8% mortgage recording tax may be entirely waived if the project involves a mortgage.
  • Refinance Existing Debt: Pay down existing debt inexpensively using Build NYC bonds.
  • Longer Repayment Terms: Financing terms can be as long as 30 to 40 years.

There is significant market demand for tax-exempt bond financing as a source of capital for real estate investments in New York City. Since its inception in 2011, Build NYC has issued more than $4 billion dollars in tax-exempt bonds.

About NYCEDC  
New York City Economic Development Corporation is a mission-driven, nonprofit organization that creates shared prosperity across New York City by strengthening neighborhoods and creating good jobs. We work with and for communities to bring emerging industries to New York City; develop spaces and facilities for businesses; empower New Yorkers through training and skill-building; and invest in sustainable and innovative projects that make the city a great place to live and work. To learn more about what we do, visit us on Facebook, Twitter, LinkedIn, and Instagram.

About Build NYC
Build NYC Resource Corporation (Build NYC) helps 501(c)(3) organizations and other exempt facilities make real estate capital investments by accessing low-cost debt through tax-exempt bond financing. Build NYC is managed by staff from the New York City Economic Development Corporation.