A Big Bet on the Arts
The center itself is a statement. Designed by architect Frank Gehry, the building will be about 100,000 square feet and sit near the Walt Disney Concert Hall in downtown LA. The Gehry-designed structure is set to feature a 1,000-seat concert hall, a 100-seat convertible dance theater, ballet and tap studios, and green spaces.
Construction started in 2024, and the school expects to open the doors in September 2027. The full price tag is $337 million, so the bond money is just one piece of the puzzle. A capital campaign is raising the rest.
Part of the bond proceeds will repay $65.5 million of existing debt, while the rest goes toward the new construction. The California Infrastructure and Economic Development Bank is issuing the bonds on the school's behalf.
Why Schools Are Borrowing Now
The Colburn School started in 1950 as a prep school tied to USC. Today it runs high school music and dance programs plus a college conservatory, and its alumni often land at Juilliard or join professional orchestras and ballet companies. Enrollment is expected to hit nearly 2,300 students across all programs this year.
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Colburn is also one of at least three prep schools that have tapped the municipal market this month. That is not a coincidence.
Nonprofit private schools can use tax-exempt bonds, and borrowing has picked up since the 2023 banking crisis knocked out two major lenders. Private schools have borrowed over $350 million this year, which is up 92% from a year earlier. Schools are upgrading campuses while competing against falling birth rates, so the buildings need to stand out.
What Colburn Means for the Bottom Line
Here is where Colburn looks different from a typical private school. The average prep school tuition runs around $50,000, but Colburn charges $19,500 for its Music Academy and $9,000 plus fees for its Dance Institute.
Maeesha Merchant, the school's CFO, said, "This financing is more than funding a building, it is about positioning Colburn for the future." She added, "It positions Colburn to serve more students, artists and audiences while reinforcing its role as a leading destination for performing arts."
For investors, the draw of a deal like this is simple. Muni bonds offer tax-free income, and schools with strong foundations and clear growth plans are generally seen as safer bets. The AA- rating tells you this is not a distressed borrower.
The concert hall is set to be a serious venue in a city that already has the Disney Concert Hall down the street. That is a tough neighborhood for live music, but Colburn is betting its students are ready to fill the seats.
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