Develop Michigan Delivers $23 Million in Statewide Project Financing

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May 05, 2015, 01:06 ET

LANSING, Mich., May 5, 2015 /PRNewswire/ -- Develop Michigan Inc. (DMI) closed eight loans totaling over $23 million in the last year. This investment in the Comeback State brings critical financing to commercial real estate developments in Michigan and leverages total investment of $58 million.

DMI was formed as a collaboration between the Great Lakes Capital Fund, the Development Finance Group and the Michigan Economic Development Corporation. In late 2013, DMI found partners who were committed to Michigan's economic revival through high-impact real-estate developments and job creation.

"We have been very pleased with the positive reaction of DMI in the marketplace. One of our highest priorities in establishing DMI was to create and retain Michigan jobs and we are thrilled at the job growth and creation that DMI has leveraged," said Rick Laber, President of DMI.

DMI, through its private equity company DMIRF, offers a wide range of loan products, including senior debt, subordinated debt, bridge financing, mezzanine financing and equity. DMI has met a variety of developer's needs in Michigan's largest metro areas and in small towns as well. A look toward future investments, DMI will continue expanding its diversity in terms of geography and types of asset classes. The organization is reviewing potential investments currently in major metropolitan areas of Michigan like Grand Rapids and Lansing and is seeking projects in rural, underserved areas, like towns in Northern Michigan and the Upper Peninsula.

Numerous organizations have partnered with DMI to drive economic progress across the State of Michigan. "It has been great expanding upon established relationships and forging new relationships to create a team of partners who believe in Michigan," added Laber.

Some of the organizations include:

PNC CDC
Fifth Third CDC
Independent Bank
Flagstar Bank
First National Bank of Michigan
Peoples Federal Savings Bank of Dekalb County
Monroe Bank & Trust
Mason State Bank
mBank
The Private Bank and Trust Company
Michigan Credit Union League
Lake Trust Credit Union
LAFCU
Frankenmuth Credit Union
Community Choice Credit Union
Community Financial Credit Union
Zeal Credit Union

DMI investments create and retain local jobs and the developments serve as catalysts and anchors for future investments and developments nearby.

Investment in Michigan to Date: Over $23 Million

The Forefront, 400 S. Old Woodward, Birmingham
Loan Program: Mezzanine Debt in the amount of $2.5 million
Mezzanine loan funds will help build a new construction development to contain approximately 7,700 square feet of commercial/retail space on the ground floor and ten for sale residential condominiums containing an aggregate square footage of approximately 40,500 square feet in the central business district of the City of Birmingham. The property is being developed by Jonna Luxury Homes.

International Market Place Building, 400 Monroe, Detroit
Loan Program: Senior Debt in the amount of $5.6 million
DMI was able to successfully help development partners restructure senior debt in order to refinance a mixed use commercial and retail development in downtown Detroit. The property is owned by 400 Monroe limited partnership.

332 Lincoln Building, 332 E. Lincoln, Royal Oak
Loan Program: Permanent First Mortgage in the amount of $1.5 million
DMI provided a permanent first mortgage loan on an older light industrial building in Royal Oak, helping to finance renovations to transform the vacant property into a mixed use commercial/retail space including a brewery with tasting room. The property is being developed by an entity controlled by the owners of C. G. Emerson Real Estate Group.

The Pronto Building, 600 S. Washington, Royal Oak
Loan Program: Permanent First Mortgage in the amount of $1.5 million
DMI's permanent first mortgage loan helps finance a mixed use commercial and retail development. The property is owned by an entity controlled by the owners of C. G. Emerson Real Estate Group.

Dartmouth Square Apartments, 26382 Colgate, Inkster
Loan Program: Short-term First Mortgage in the amount of $1.45 million
DMI provided a short-term first mortgage loan to a single purpose entity to facilitate the acquisition of an existing 126-unit multifamily development in Inkster. The property was purchased by an entity controlled by Ginosko Development Company.

East Main Redevelopment, N/W/C of Main and Wabash Streets, Milan
Loan Program: Bridge Loan in the amount of $1.62 million
DMI funded a Bridge Loan on a rehabilitation of a mixed use development consisting of commercial space and 15 residential units in Milan, Michigan. The property is being developed by David Snyder.

Wright Opera Block, 101 – 113 E. Superior Street, Alma
Loan Program: Bridge Loan in the amount of $1.85 million
DMI funded a Bridge Loan on a rehabilitation of a historic building downtown Alma, Michigan. The former Wright Opera House was nearly destroyed by a fire in 2011. Now, it is a mixed-use building in the downtown business district with its ground floor featuring retail and 13 student suites housing 45 students from Alma College on its top floors. The property is being developed by Kurt Wassernaar.

Griswold Lofts, 1145 Griswold, Detroit
Loan Program: Permanent financing in the amount of $7.25 million
DMI provided permanent financing to renovate a historic building into residential and retail space for use by families and individuals in Detroit. The property is being developed by Capital Park Partners.

Develop Michigan, Inc. (DMI) was formed as a collaboration between the Great Lakes Capital Fund, the Development Finance Group, the Michigan Economic Development Corporation and its partners. DMI brings critical development finance tools that many other states around the country enjoy but have been lacking in the Michigan economy for decades. DMI is an innovative not-for-profit development finance organization providing commercial real estate financing based on a proven model that has generated billions of dollars in economic development investment in the U.S. and abroad over the past thirty years. More information about Develop Michigan can be found at http://www.developmichigan.net.

Contact: Kelly Bernero
(517) 582-1742
[email protected]
**Photos of Developments Available Upon Request**

SOURCE Develop Michigan, Inc.