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PCSD

PCSD Receives $20 Million Award from the U.S. Department of Education for Credit Enhancement

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Pacific Charter School Development Receives $20 Million Award from the U.S. Department of Education for Credit Enhancement

Los Angeles, California, September 29, 2023 — Pacific Charter School Development (PCSD), a non-profit organization committed to addressing educational inequality, is proud to announce the receipt of a $20 million award from the U.S. Department of Education’s Credit Enhancement for Charter School Facilities Program for 2023. This significant award will further PCSD’s mission to empower charter schools and create sustainable educational facilities in under-resourced communities across California, Texas, and Washington.

PCSD’s overarching goal is to demonstrate how their innovative model, which includes partnering with philanthropic and mission-minded investors, can expand the lending market for early-stage and expanding schools. By leveraging this award, PCSD seeks to significantly impact the charter school community and provide equal educational opportunities to students in underserved communities.

The award, administered through the U.S. Department of Education’s Credit Enhancement for Charter School Facilities Program, marks a pivotal moment in PCSD’s journey to transform education in underserved areas. With this award, PCSD aims to strengthen charter school facilities and expand educational opportunities for students who need it most.

The $20 million award from the U.S. Department of Education will be instrumental in PCSD’s ongoing efforts to create educational facilities that are financially sustainable. The award will be allocated to two primary strategies:

1. $12 Million Loan Loss Reserve: This reserve will be leveraged with $35 million of PCSD’s equity to raise a total of $40 million in commercial debt with advantageous terms. This initiative will establish the $75 million Pacific Charter Facility Fund (PCFF), dedicated to providing low-cost capital for the development of new charter school facilities.

2. $8 Million Debt Service Reserve: Designed to increase charter schools’ access to financing, this reserve will incentivize lenders to offer financing, especially to early-stage schools, with terms that they can afford.

Through the PCFF, PCSD is committed to supporting a minimum of 15 school facility projects within the first five years of the award, including 10 early-stage or expanding schools and 5 replicating schools. The organization plans to leverage a remarkable 25:1 Debt Reserve to senior debt ratio to secure financing with affordable terms for at least 10 school facility projects.

“We are deeply honored to receive this award from the U.S. Department of Education,” said John Sun, CEO of PCSD. “This funding will not only transform the landscape of charter school facilities but also empower countless students with access to high-quality education. We are grateful for the Department of Education’s support in our mission to dismantle systemic inequality in education.”

About Pacific Charter School Development
Pacific Charter School Development (PCSD) is a non-profit, full-service real estate development firm. It offers an array of services tailored to meet the unique needs and goals of each of our charter school partners. During our nearly 20-year history, PCSD has secured more than $1.09 billion in financing for school development projects, benefiting more than 120 schools and serving over 49,000 students in under-resourced communities in California, Massachusetts, Washington, and Texas. For more information, visit Pacific Charter School Development.

 

PCSD Interns: Unlocking the World of Real Estate and Commercial Lending: A Journey with City National Bank

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Real estate is an all-encompassing industry that impacts our daily lives in numerous ways. From the places we work and shop to the homes we live in, real estate plays a vital role in shaping our communities. Recently, our interns had the opportunity to meet with Dena Harte, Cindy Cindrich, and Simon Wu from City National Bank. This encounter opened our eyes to the intricacies of commercial lending and the fascinating world of real estate. In this blog post, we’ll take you on the same journey we experienced, exploring the valuable insights and lessons we gained from our meeting with these seasoned professionals.

Dena Harte: A Wealth of Experience in Commercial Banking

Our journey began with Dena Harte, an expert with an impressive 20-year tenure at City National Bank. She specializes in working with nonprofit organizations and for-profit corporations, managing deposits and endowments. Her vast experience and keen understanding of the commercial banking landscape made her an invaluable resource throughout our discussions.

Cindy Cindrich and Simon Wu: Unveiling the World of Real Estate

Cindy Cindrich, a veteran with 24 years of experience, and Simon Wu, work in City National Bank’s commercial lending site. Their expertise lies in the income property group, where they navigate the complexities of real estate lending. During our meeting, Cindy and Simon delivered an engaging and dynamic presentation on the diverse aspects of real estate.

Understanding Real Estate: A Comprehensive Overview

Cindy and Simon began our session by shedding light on the diverse facets of real estate. From retail spaces like malls and power centers to various office types, multi-family properties, industrial spaces, and special-use facilities, the scope of real estate is vast and varied. Each category has its own set of advantages and disadvantages, which they elaborated on, giving us a comprehensive understanding of the market.

The Role of Lenders: Unveiling the Lending Process

One of the most insightful aspects of our meeting was when Cindy and Simon walked us through the lending process from the perspective of City National Bank. They explained what lenders look for when considering loan applications. To demonstrate this, they role-played a scenario in which Simon presented a facility to the bank seeking a loan, while Cindy posed challenging questions to assess the feasibility of the loan.

Lessons Learned: The Complexity of Real Estate Investment

Through this interactive session, we came to realize that securing a loan for real estate investment is no simple task. The intricate web of factors to consider, including competition, local businesses, location, occupancy rates, and more, requires meticulous evaluation. It was evident that thoughtful planning and thorough research are essential before embarking on any real estate venture.

Fueled by Passion: A New Interest in Real Estate

As our meeting concluded, we found ourselves captivated by the world of real estate and commercial lending. The knowledge shared by Dena, Cindy, and Simon ignited a newfound interest in many of us to explore this field further. The interns even expressed their desire to pursue careers or investment opportunities in real estate, driven by the allure of its challenges and rewards.

Our meeting with Dena Harte, Cindy Cindrich, and Simon Wu from City National Bank was an enlightening experience that broadened our horizons and deepened our understanding of real estate and commercial lending. We learned that the world of real estate is multifaceted and that securing loans for such investments requires careful consideration of various factors. The passion and expertise of these professionals inspired us to explore this industry further, and we look forward to unlocking more doors of opportunity in the fascinating world of real estate.

PCSD Interns: Driving Impact and Empowering Education: Insights from Rob Nickell, Executive VP at HJ Sims

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In the ever-evolving landscape of finance and investment, some firms stand out for their unique approach and unwavering commitment to making a positive impact. HJ Sims, a boutique investment firm founded in 1935, is one such company. Recently, our interns had the privilege of speaking with Rob Nickell, the Executive Vice President at HJ Sims. Rob shared his experiences, insights, and passion for working in the finance industry, particularly in the realm of education and non-profits. Let’s delve into the fascinating journey of a seasoned professional who finds fulfillment in transforming the educational landscape and serving the greater community.

A Legacy of Excellence

HJ Sims’ rich history spans nearly a century, and its continued success can be attributed to its commitment to personalized service and dedication to its clients. As a family-owned business, it embraces the values of integrity, trust, and long-term vision. The current CEO, the son of the founder, carries forward the legacy of the firm and its mission to create value for its clients and the community.

A Specialized Approach

HJ Sims proudly focuses on wealth management, investment banking, and institutional services. A unique aspect of the firm is its dedication to specialized services. An essential part of HJ Sims’ identity is their education practice, which they established 25 years ago. Through this initiative, they have made significant strides in supporting schools, especially charter, independent, and private schools, as well as higher education institutions.

Rob Nickell: A Visionary Leader

Based in Dallas, Rob Nickell spearheads HJ Sims’ endeavors across the western United States, from Texas to California. As a co-leader of the education finance practice, he plays a vital role in securing financing for schools to construct and establish permanent homes. His mission is not just about securing funding but doing so in a cost-effective manner.

Drawing from a diverse background

Rob’s journey to his current position is a testament to the importance of a well-rounded education and diverse experiences. Graduating from Emory with a degree in finance and technology and a minor in philosophy, Rob’s education laid the foundation for his future achievements. His initial foray into the finance industry led him through various roles at both large and small firms, ultimately leading him to public finance, where he found his niche in the education and nonprofit sectors.

A Passion for Impact

Rob’s dedication to his work is evident in his passion for investment banking, which he finds stimulating and rewarding. But what truly sets his career apart is his ability to leverage his expertise for the betterment of the community through his work with educational and nonprofit institutions. By facilitating financing for schools, he plays a pivotal role in shaping the future of countless students, ensuring they have access to quality education and resources.

Building and Nurturing Relationships

Throughout his career, Rob emphasizes the importance of relationships as the bedrock of his success. By investing time and effort in understanding the needs and aspirations of his clients, he has forged strong and enduring partnerships that have proven instrumental in achieving mutual growth and success.

In an industry where profits often take precedence, HJ Sims and its Executive VP, Rob Nickell, serve as a shining example of how finance can be a force for good. Through their specialized approach and dedication to educational and nonprofit finance, they create meaningful impact and empower communities to thrive. Rob’s journey reminds us of the significance of building diverse skills, finding a passion that aligns with our values, and prioritizing meaningful relationships.

PCSD Interns: Exploring Public Finance: Lunch and Learn with John Kim at Stifel

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Recently, we had the privilege of sitting down with John Kim from Stifel during a lunch and learn session. Stifel is a publicly traded firm renowned for its expertise in corporate finance, commercial banking, public finance, and asset management. Our association with Stifel revolves around the financing of various charter school facility projects, a partnership that has yielded great results.

The session began with John sharing some invaluable takeaways for our interns, emphasizing the importance of effective communication and active listening. He encouraged interns to take diligent notes and reflect on specific insights gained from their experiences in different roles during their internships.

Charting his own career

John then took us on a journey through his own career path. Hailing from Palos Verdes, he attended public school and became the second generation in his family to pursue higher education. From a young age, he learned about customer service while working at his father’s gas station. While studying at UC Berkeley, he initially aspired to attend medical school and pursued a degree in Molecular Biology and Rhetoric. However, life’s twists and turns, along with some inspiring history classes at UCLA, led him to reevaluate his career goals, ultimately majoring in History and Rhetoric at UC Berkeley.

Following his undergraduate studies, John taught high school in Berkeley and contemplated the idea of going to graduate school. However, a conversation with his sister proved pivotal as he found his calling in the world of finance. He embarked on his 26-year journey with Stifel in Los Angeles, where he has made significant contributions to the company’s success.

Stifel and the world of finance

During the session, John delved into Stifel’s expertise in four key areas and shed light on how lending works in the world of finance. He emphasized the crucial information required to secure a loan and why someone might lend to you. In his domain of public financing, and in other areas, a well-prepared prospectus (or story book) is essential when approaching potential investors. The prospectus presents all the relevant facts and information investors need to know and conveys a compelling narrative. John’s work in public finance involves raising capital for various government entities, including states, counties, cities, school districts, nonprofits, and charter schools. These entities can obtain funding by issuing bonds.

It’s worth noting that while the public finance division at Stifel comprises a relatively small team of 250 employees, the asset management division boasts a workforce of 8,000. Despite its size, the public finance division plays a crucial role in the financial ecosystem, and John actively markets to credit analysts at prominent investment management firms.

Investing in charter schools

The lunch and learn session concluded with a thought-provoking video presentation on STEM Prep, a Los Angeles-based charter school and a valued partner of PCSD. The video highlighted the positive impact of partnering with charter schools, illustrating how such collaborations can benefit the community, students, and education as a whole.

In closing, the lunch and learn with John Kim from Stifel was an eye-opening experience that shed light on the multifaceted world of finance and the importance of adaptability in one’s career journey. John’s personal story serves as a reminder that career paths are rarely linear and that the ability to seize opportunities and reevaluate goals can lead to fulfilling and successful outcomes. We are grateful for the insights shared during this session and look forward to continuing our partnership with Stifel in making a positive impact in the education sector.