Originally founded in 1932, Vaughn College of Aeronautics and Technology (“Vaughn”), a NY not-for-profit 501(c)(3) organization, provides students undergraduate and graduate degrees in engineering, technology, management, aviation, aviation maintenance, engineering technology, animation and digital technologies, management. Non-degree programs include air traffic control and flight dispatch.
Located on approximately 6.5 acres of land adjacent to La Guardia Airport in New York City, Vaughn’s growing enrollment had placed capacity constraints on its existing campus. Subsequently the College needed to secure additional classroom and academic office space in accessible, nearby location(s).
Solution and Execution
GATES Capital was engaged by Vaughn to arrange $7,000,000 in bridge financing (and subsequently permanent tax-exempt debt financing) for the purchase and/or renovation of two identified commercial facilities located within close proximity to its campus. GATES Capital was able to secure such bridge financing within 35 days as necessitated by “time of the essence” provisions in the purchase/lease contract. The bridge loan is expected be repaid within twenty four months from the proceeds of tax exempt bonds to be issued by Build NYC Resource Corporation on behalf of Vaughn.