New York based development firm Barone Management has crowd
funded $6.5 million to build a new Queens school.
The company announced it worked with online investment marketplace
CrowdStreet to raised the equity which tops up a $22.5 million construction
loan from Metropolitan Commercial Bank and $6.8 million in sponsor equity for
“This is a special project with a social impact investing
component, which we thought would be appealing to individual investors on the
CrowdStreet platform,” said Scott Barone, founder and principal of Barone
“Raising equity on CrowdStreet was an incredibly
streamlined, efficient process. This is hopefully the first of many deals we
bring to investors on the platform.”
Barone is building a four-story, 67,286 s/f charter school at
45-20 83rd Street in the Elmhurst section of Queens.
Friends of the Renaissance Charter Schools, has signed a
31-year lease to occupy the property, which will be operated by Renaissance Charter
School, one of the oldest and highest-ranked charter schools in New York City.
The school will serve a majority population of minority
students, multi-language learners and economically disadvantaged kids. It is
currently approved to be K-6, but may ultimately serve K-8 or K-12.
It will have 39 typical classrooms, plus additional spaces
to accommodate music, art and science programming, a 6,000 s/f high school
sport regulation gym, and a nearly 3,000 s/f cafeteria. ·
Occupancy will be in September 2022. In the meantime, the developer has secured temporary incubation space for the operator at another location.
153 individual investors on CrowdStreet provided equity for
Ilya Gamer, managing director of CrowdStreet, commented, “Barone
Management is an established operator with knowledge and expertise in the local
market and the charter school sector.
“This deal is remarkable for the quality and character of
the building to be developed, its long-term occupancy by a highly regarded
charter school operator, and its service to a special set of stakeholders.
CrowdStreet is pleased to be able to facilitate the equity investment of the
first charter school project to be on our marketplace.”
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