Los Angeles LDC   
A Community Development Financial Institution  
Profile Programs Services Funded Projects Prequalification Form Contact Us Links Home
 
Funded Projects
Recently-Funded Projects
Project Profiles

Project Profiles


Sand Tots Parent Participation Nursery

2227 Artesia Blvd & 2224 Matthews Avenue
Redondo Beach, California 90278

Census Tract: 6205.22
Minority %:   21.35%
Poverty %:   7.40%

Project Description
Sand Tots Parent Participation Nursery, a not for profit 501(c)(3), purchased two lots totaling 6,360 SF of improvements on a 14,000 SF lot retail property located at 2227 Artesia Blvd. and 2224 Matthews Avenue, Redondo Beach, California 90278 to relocate Sand Tots Nursery School. The project also includes renovations to the building at a cost of $100,000. The facility was located within walking distance of the then existing site of the school, the North Redondo Chapel. The new facility allowed them to accommodate increased enrollment and opportunity for expansion. The renovation budgeted at $100,000 was provided by the seller through escrow. A portion of the additional work necessary to open the center was donated at cost by the member parents.

Neighborhood Description
The subject property is located in the South Bay of Los Angeles County. The district is 100% built up with a mix of retail, office, and residential properties. Development along Artesia Boulevard in the subject's immediate neighborhood includes some small retail/office properties, restaurants, and smaller owner-user office buildings. This area is a high-density retail/office district that is primarily occupied by owner-users. The area also exhibits a high level of auto and pedestrian traffic. The secondary streets have single and multi family housing. The current zoning of the property is "C2-PD" Commercial Pedestrian Orientated.

Community Development Impact
This loan allowed Sand Tots Parent Participation Nursery, a not for profit 501(c)(3) corporation to acquire a property in the vicinity of the then current site of six years, thus keeping the current families enrolled from traveling no more than a walking distance from their previous site. The nonprofit school benefited from the stability of owning their own facilities. The new facilities increased their capacity of the school. Historically, Sand Tots had maintained a waiting list of at least 100 families. This allowed Sand Tots to increase the enrollment of children and families in the their membership.

Borrower/Sponsor
Sand Tots Nursery School was founded in 1972 by a small group of families who wanted to form curriculum for their children's early childhood education. The philosophy of Sand Tots is "learning through play" which is modeled after the program at UCLA's University Elementary School (UES). Parents participate both in the classroom and in the daily operations of the school, which keeps the operations cost down. In 1994 the school relocated from the Robinson Elementary School to North Redondo Chapel. Sand Tots is governed by a board of directors and advisory members comprised of community leaders chosen by the Board.

Community Development Finance Effect
The participation of LDC in this transaction allowed Sand Tots Parent Participation Nursery to acquire the subject property. The structure of the loan included a commercial bank with a senior lien, the LDC with a junior lien, and the equity infusion from the borrower:

  % of Loan Loan Amount
Senior Lender 50.00% $405,000
LDC 40.00% $322,000
Equity 10.0% $80,500
Total Project 100.0% $805,000

The LDC funds leveraged an additional $405,000 from private capital for this community development project in the form of fixed rate business real estate loan.

  Senior Lender
(1st TD)
LDC
(2nd TD)
LTV 50.00% 40.00%
DCR 1.25 1.15

Bank which provided the business real estate loan:

Wells Fargo Bank
Westside Business Lending
Phone: (310) 285-5743

Sources and Uses of Funds:
Uses Wells Fargo Bank LDC Equity Total
Land & Building $402,500 $322,000 $80,500 $805,000
Total Project Cost $402,500 $322,000 $80,500 $805,000
% Project Cost 50% 40.00% 10.0% 100.0%