PRINCE GEORGE'S COUNTY, Md. — On June 8, AMC East Communities, a joint venture between the Department of the Air Force and Clark Realty Capital, secured a successful real estate and financial closing on a first-of-its-kind development of a new 35,000-square-foot charter school on Joint Base Andrews. AMC East Communities worked with local partners EagleBank and the Charter Schools Development Corporation (CSDC) to structure an innovative sub-ground lease and loan guaranty program that will produce the first new charter school building financed entirely with private capital on a United States military installation.
CSDC will design, develop, finance, and construct the new school using a $6 million loan provided by EagleBank. AMC East Communities facilitated the transaction with a loan guaranty backed by cash flows generated from its 1,600-unit privatized military housing portfolio and augmented by a corporate guaranty from Clark Realty Capital. Construction on the new school building commenced this month and delivery is anticipated in late fall of this year. The school plans to expand enrollment to approximately 500 students in grades K-8 within the next five years.
"We are deeply grateful for the hard work and commitment of all the project stakeholders involved in this very complex transaction. We are particularly appreciative of EagleBank for working diligently with our team to provide the necessary financing for this new school," said Sean Callahan, director with Clark Realty Capital responsible for managing AMC East Communities.
CSDC will sublease the new school to Imagine Andrews Public Charter School (IAPCS), an affiliate of Imagine Schools, the largest charter school operator in the country. The IAPCS student body is comprised of children from military families who reside at Joint Base Andrews, as well as students from the surrounding community. All IAPCS students must be Prince George's County residents and admission is determined by lottery. In August 2011, AMC East Communities provided IAPCS an on-base, 15,000-square-foot temporary facility at no cost.
"The impact of having the Imagine Andrews Public Charter School here on Joint Base Andrews cannot be overstated," said Col Ken Rizer, commander of Joint Base Andrews and the 11th Wing. "It allows us to recruit and retain quality personnel, take care of our military families, and further strengthen our bond with the Prince George's County community. Our sincerest gratitude goes to Clark Realty Capital, our main partner in making this venture a reality."
The success of the charter school initiative at Joint Base Andrews has spurred an interest in charter schools on other Air Force installations across the country and at the Air Force Center for Engineering and the Environment (AFCEE), which oversees the housing privatization program for the Department of the Air Force.
"The Air Force Housing Privatization and AMC East team successfully worked together to achieve a milestone event in standing up a new Charter School to support the Joint Base Andrews Community," noted Colonel Thomas Laffey, director of the Air Force Housing Privatization Program at AFCEE. "Through concept approvals, legislative actions, canvassing of other National Charter School resources, and partnering with a local banking establishment, we are just months away from providing military families residing at Joint Base Andrews with an exceptional environment conducive to ensuring a quality education for their children. This initiative will result in a significant Quality of Life improvement for military families residing at Joint Base Andrews and the local community that our Air Force Center for Engineering and the Environment hopes to replicate throughout other communities within the Air Force Housing Privatization program."
In a March 2012 Congressional testimony before the U.S. House of Representatives Appropriations Sub-Committee on Military Construction, Veterans Affairs and Related Agencies, General Norton A. Schwartz, Chief of Staff of the United States Air Force, cited the IAPCS charter school as an example of how privatized communities are better serving military families across the country, saying, "Our goal was to create thriving communities on our installations, and the key thing to creating a thriving community is the right kind of school, whether it's on or off base. The people who run the privatized housing projects recognize the wisdom of having good schools that serve the communities they are trying to populate. This is a win-win." # # #About AMC East Communities
AMC East Communities is a 50-year joint venture between Clark Realty Capital and the Department of the Air Force formed to manage the financing, development, operation, and maintenance of privatized military housing communities at Joint Base Andrews in Prince George's County, Md. and MacDill Air Force Base in Tampa, Fla. AMC East Communities recently completed the development of 369 new and renovated homes on Joint Base Andrews and is scheduled to complete the development of 327 new homes at MacDill Air Force Base next year. The total development cost at Andrews and MacDill was approximately $330 million and was funded entirely with private capital. The project has won numerous national awards and accolades for excellence in design and construction.About Clark Realty Capital
Clark Realty Capital (CRC) is a fully integrated national real estate company offering a broad base of services including capital markets, development, construction, property management, and investment management. The Army, Navy, Air Force, and Marines are leveraging the ingenuity and assured performance of CRC at 12 military installations throughout the United States. Upon completion of current military projects, CRC will have built or renovated over 34,000 homes with a development value in excess of $4.9 billion. For more information, visit www.clarkrealtycapital.com
.About Charter Schools Development Corporation
Charter Schools Development Corporation (CSDC) is a 501(c)(3) nonprofit corporation and Community Development Financial Institution (CDFI) promoting innovation and excellence in education by acquiring, designing, building and financing facilities for great public charter schools nationally. CSDC has financed hundreds of charter school properties across the country and developed and built over one million square feet leased or owned by 30 charter schools. CSDC helps charter school entrepreneurs and leaders turn educational visions into reality, with the goal of ultimately improving student achievement by increasing school choice and catalyzing competition within the American K-12 public education system. For more information, visit www.csdc.org
.About Eagle Bancorp, Inc. and EagleBank
Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and conducts full service banking services through sixteen offices, located in Montgomery County, Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace. For more information, visit www.eaglebankcorp.com