REAL ESTATE WILL NEVER BE A BARRIER TO AN EXCELLENT EDUCATION
ANNUAL REPORT 2018
AN INFLECTION POINT IN EDUCATION REFORM
Every child should be able to attend a great public school in their
neighborhood. Unfortunately, this is not the reality in many communities
across the nation. Civic Builders is committed to supporting
educators as they solve the education crisis in our backyard.
This work lies at the nexus of community development and
We are at an inflection point in the education reform sector. With
over 1 million children on charter school wait lists nationally, over
50,000 of those students in NYC, and a challenging political environment,
now more than ever we need to support great public
charter schools. To bring access to opportunity to the thousands
of students who are shut out, Civic Builders will continue to partner
with the nation’s top educators seeking to open and operate
Educators consistently name access to affordable facilities as a
top barrier to growth and serving more students. Civic Builders is
the nation’s leading non-profit charter school developer and
lender, focused on increased access to high-quality education for
all students. Since 2002, Civic Builders has brought tailored facilities
services to 39 schools. We are constantly evolving and growing
our services to find the right facilities solutions unique to each
Through decades of experience and expertise in charter school
facilities, Civic Builders manages all elements of development
and financing so school leaders can focus on the important work
of opening and operating high-quality schools. We are prepared
to bring the most innovative and impactful products to the char-
ter facilities space and are excited for this next chapter of the
With gratitude and enthusiasm,
Co-Founder & CEO
Brahm and David
6 IN 2018
$1 BILLION INVESTED
2,500 IN 2018
$100M IN 2018
$118M NMTC ALLOCATION
$40MM IN 2018
ON TO HIGHER ED
to build thriving
1,000 IN 2018
Charter schools are unable to access
affordable loans for their facilities
projects. This presents a major
barrier to the growth of great schools.
FUND CASE STUDY
Over the last five years, Civic Builders
has created and scaled a lending
business to meet this need and is on
track to be one of the largest charter
school facilities lenders in the nation.
The Facilities Investment Fund, a partnership between the Walton Family Foundation, Bank of
America Merrill Lynch, and Civic Builders, is a groundbreaking $100 million loan fund that is committed
to improving facilities financing for high-performing charter schools and networks across
the country. The program provides financing for new school construction or renovations to existing
buildings with loans up to $20 million for up to 90% loan-to-value.
Throughout 2018, the Facilities Investment Fund helped to finance the construction of two new
schools, Great Hearts is constructing a new 784 student, K-6 school in San Antonio, TX, and KIPP
Indianapolis is building a new high school facility to serve 450 students. The Facilities Investment
Fund represents a first-of-its kind partnership between philanthropic capital and commercial capital
used to Improve access for early stage schools and operators that show promise in improving
outcomes for economically disadvantaged students.
While most charter schools typically grow one
grade at a time, real estate is not easily
expandable. Most scaling schools take on more
space than they need or can afford in early years.
Civic Builders is launching New York City’s first
public charter school incubation space to offer
flexible, affordable, and pre-built space to new
and growing schools.
SOUTH BRONX INCUBATOR
The Jill & Brian Olson Charter School Incubator, located at 411 Wales Avenue,
Bronx, NY, will support schools as they scale and grow into their long-term,
permanent school sites. Civic Builders’ incubation space is 26,000 square feet of
the 52,000 square foot building with an additional 6,000 square foot full gymnasium.
The space will open for school year 2019 with Neighborhood Charter School
Bronx as the anchor tenant and American Dream School as the first incubating
tenant. At scale, the space will educate approximately 620 students annually
across grades K-8. During the four years of incubation in the space, Civic Builders
will support the launch of three to five schools.
DEVELOPS NEW TURNKEY
The incubator model represents a compelling opportunity for new and scaling
schools to pay rent only up to the facilities assistance subsidy for the number of
students enrolled each year. Real estate does not typically match size and rental
costs to a scaling school’s size, so this brings huge benefit to schools as they grow.
The incubator space is a key example of Civic Builders’ efforts to tackle the variety
of facilities challenges our school partners face.
Affordable housing and great public schools are
cornerstones to healthy and thriving communities.
Civic Builders recognizes the myriad benefits to pairing
these neighborhood anchors.
& BRILLA VERITAS
Civic Builders entered a partnership with Phipps Houses, an affordable
housing developer, for a mixed-use development in the South Bronx. This
project will bring 70 units of affordable housing and a new K-5 space for 450
students from Brilla Veritas Charter School.
PARTNERSHIPS TO BUILD
Partnerships such as these are excellent avenues to unlock affordable space
for schools. From project efficiencies to increased subsidies, a mixed-use
development is an excellent approach to launching school facilities in large
cities such as NYC. Civic Builders will continue to explore opportunities to
build thriving communities and excellent educational choice.
Sustainability is inherent in our model.
Capital is recycled from past investments and used
for future school projects.
2016 2017 2018
$14,891,566 $17,622,531 $16,300,508
$18,169,062 $13,321,716 $34,939,982
$2,539,258 $4,102,314 $2,565,750
$67,796,787 $68,334,393 $78,520,134
From projects in the current portfolio, Civic
will recycle over $40MM for reinvestment in
new school buildings.
$103,396,673 $103,420,955 $132,326,375
*Aggregate Balance Sheet includes Civic Builders, Inc., subsidiaries, affiliates, and
unrelated sponsored entities. This presentation does not conform with GAAP; audited
financial statements are available upon request.
THANK YOU TO OUR
A new philanthropic investment fund focused
on charter school facilities nationwide
New Facilities Models
More incubation space to help schools launch and grow
Affordable housing, community facilities, and a new,
50,000 square foot school space in the heart of East
Harlem at the SenderoVerde development
To our supporters and friends, your ongoing partnership has facilitated
Civic Builders’ impact and success. Our school buildings
bring opportunity and joy to students each day, like graduating
senior, Yancee Mendez, from Hyde Leadership Charter School
from Bronx, NY.
“My favorite part of my school is the windows. At my middle
school, there were hardly any windows and it seemed like there
was no freedom or future, either. It was almost like a prison. The
orange lights did not help and made the days go by slowly. The
few windows that were there were covered up by blinds and by
cages, presumably so students couldn't jump. This made sense
because we all thought of escaping, frequently. Each little infraction
received a reprimand, tenfold. School should be about learning
and exploring your choices but instead, we were robots on an
When I got to high school, everything changed. The building was
brand new so the desks were nice and unmarred. The blue and
green chairs gave the school a very clean look. Every floor had
lockers that we as students could actually use. The lighting was a
bright white instead of a depressing orange hue. Every room had
windows, some had window sills with plants on them while others
had perfect views of the Bronx.
These windows symbolize freedom and future for me. They are a
clear reminder of what my community is and what I should be
striving to make better. This school has given me a great education
and beautiful facilities in which to learn. The views are not
the contemporary definition of beautiful but they are my definition
because they frame my community.”
Civic Builders, Inc.
180 Varick Street, Suite 1414
New York, NY 10014
ANNUAL REPORT 2018