In March 2021, IPS Enterprises Inc. closed its initial financing in the Jacksonville, Florida region. This school will open in Fall 2022 and is located on Bassett Road. This represents the third financing for the Florida region, with the first two financings completed in Tampa, IDEA’s other Florida market.
The $19.8 million financing will construct Phase I of two phases which will ultimately house grades K-12 and about 1,500 students. The total overall financing need is expected to be around $25 million, with Phase II occurring in a couple of years. The financing is comprised of $11.8 million of senior debt from PNC Bank, and $8.3MM subordinate debt from the Florida Department of Education through a program administered by Building Hope on behalf of the State.
IPS Enterprises serves as the borrower, leasing the facility to IDEA Florida. IPS is looking to close a second Jacksonville campus acquisition later this year, as well as close on two more acquisitions in Tampa. All projects to date have participated in the State’s Schools of Hope program, and all future projects are expected to as well.
Buck Financial Advisors served as financial advisor to IPS. Hunton Andrews Kurth served as borrower’s counsel, and Shulman, Lopez, Hoffer & Adelstein served as special counsel to IDEA Florida. PMSI out of Austin serves as project manager, and InSite EFS serves as real estate broker. Congratulations to the future students and families of Jacksonville, and to IDEA Florida and IPS Enterprises as they continue their expansion.