Real Estate Development

FRED addresses some of the more systemic issues facing charter school real estate development.

Adaptive Reuse of Commercial Properties

The real estate market is facing tough times as vacancy rates hit record highs. Some property owners are finding charter schools as a compelling alternative tenant option for vacant commercial and retail properties. Charter schools are financially sound, contribute positively to the community, promote long-term stability, and align with broader social and economic goals. These resources can help schools pursue vacant commercial space.

“Old Macy’s turns into new high school, middle school” WSMV4, August 27, 2024 old-macys-turns-into-new-high-school-middle-school
“When Science Class is in a Former Macy’s” New York Times, February 23, 2024 when-science-class-is-in-a-former-macys
“That Vacated Sears Store May Reopen as a Public School”, Wall Street Journal, May 4, 2021 that-vacated-sears-store-may-reopen-as-a-public-school-11620120601
Are Landlords Ready to Welcome Charter Schools.pdf, Commerce + Communities Today, International Council of Shopping Centers, July 23, 2023
“Spooky Buildings”, November 1, 2021, Charter School Facility Center blog post, James Heugas https://facilitycenter.publiccharters.org/blog-post/2021/11/spooky-buildings
“Developers are repositioning vacant space as charter schools”, Building Design and Construction August 13, 2021 https://www.bdcnetwork.com/developers-are-repositioning-vacant-space-charter-schools
“Mall Landlords Look to Charter Schools to Fill Vacant Space”, Commercial Observer, May 5, 2021 https://commercialobserver.com/2021/05/mall-landlords-look-to-charter-schools-to-fill-vacant-space/

Rural Charter Schools

Since the first charter school law was established, charter schools have grown in number and in size across the country. Even with this growth, finding adequate and affordable facilities, as well as ways to finance those facilities, has continued to be a challenge, especially for rural charter schools. Surprisingly, the United States Department of Agriculture (USDA) is one of the largest organizations to provide financing for charter school facilities. It surpasses most banks and even the Department of Education. Through the USDA Rural Development’s Community Facilities Direct Loan and Grant Program and the Guaranteed Loan Program, over 100 rural charter schools have received more than $600 million in financing since 2008. We continue to make these funds more accessible by working with USDA regional and federal officials to understand the unique needs of charter schools and to standardize the application process by reframing the demands of the feasibility studies. We have reduced the costs of these feasibility studies in the first few projects.

These resources can help rural schools find funding:

“USDA Financing of Rural Charter Schools”, January 23, 2020 https://facilitycenter.publiccharters.org/resource/industry-metrics-charter-schools-and-usda-financing
USDA Community Facilities Direct Loan & Grant Program, https://www.rd.usda.gov/programs-services/community-facilities/community-facilities-direct-loan-grant-program