“Building Hope did a great job. Their expertise was very good, and their financing was the best!” Fevzi Simsek, CFO, SST Public Schools
In 2016, Schools of Science and Technology (SST) sought to expand its network of STEM-focused public charter schools in Southeastern Texas to serve more students. In order to accomplish this dream, SST’s leadership knew it would need additional funding to purchase new facilities. The proposed solution was to find another buyer and lease the facilities while saving the capital to purchase them permanently.
This would be a tall order to say the least. It would take a partner that understood SST’s vision and had the expertise to make the accounting work. That’s where Building Hope came in.
SST and Building Hope joined forces in 2017 on two projects, SST North West in San Antonio, and SST Excellence in Houston. Both schools were to serve disadvantaged Texas communities. Building Hope built the North West facility from scratch and folded the first year’s rent into the project costs. SST had identified an existing, move-in-ready facility for the Excellence campus. With no project cost, Building Hope added the rent amount to the purchase option in SST’s lease agreement.
“It allowed us to beef up our cash,” said SST CFO Fevzi Simsek. “We didn’t pay rent or building costs and our revenue continued to grow as we increased enrollment. Along with the financial stability, we’ve also seen academic success, and that’s allowed us to attract high investment ratings.”
Those ratings also helped SST to access the Texas Permanent School Fund – a bond guarantee program. In December 2019, SST purchased both the North West and Excellence campuses outright.
Since that time, Building Hope and SST have collaborated to complete three more schools in the Houston and San Antonio regions under the same terms with Building Hope acting as both real-estate developer and a bridge solution on SST’s way to the bond market.
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