New Development in Midtown Detroit Further Highlights the City's Revitalization Previously Vacant Historic Building Will House 25 Rental Apartments
ARLINGTON, Va., March 4, 2014 /PRNewswire-USNewswire/ -- As yet another symbol of the revitalization of Detroit's urban center, Midtown Detroit will soon be home to an additional 25 rental apartments, thanks to an important collaboration between the State of Michigan, two community development finance institutions (CDFIs) and a community organization. The 609 E. Kirby Project, made possible by the Living Cities Catalyst Fund, will renovate a currently vacant historic building that served as the first Hebrew School in the City of Detroit. Originally constructed in 1922, the building sits in the immediate vicinity of the Detroit Institute of Arts.
The two CDFIs—Capital Impact Partners and Invest Detroit—partnered with the Michigan Economic Development Corporation and the University Cultural Center Association, a subsidiary of Midtown Detroit, Inc., to provide more than $4.25 Million in financing for the transaction.
"This was a complex deal that was not easy to get over the finish line," said Ian Wiesner, Senior Loan Officer of Capital Impact. "But we at Capital Impact and our partners stuck it out through a sometimes bumpy process in order to bring a historic building back to life and support a local developer. This project is one in a series that Capital Impact has been involved with to bring continued investment and vitality to the Woodward Corridor."
The Woodward Corridor has long been a main artery in the City of Detroit that experienced significant decline during the City's long term struggles with high unemployment and depopulation. To date Capital Impact Partners has worked with its financing partners to provide more than $55 Million in financing to 9 different projects along the Woodward Corridor.
"The renewed faith in Detroit's revitalization is only made possible by regular evidence of new projects," said Richard Hosey, the owner and developer of the project and resident of Detroit. "The regular evidence in Midtown Detroit has only been possible because of the collaborative efforts of Capital Impact Partners, Invest Detroit and their partner lenders. They mix prudence with market understanding to achieve a workable financing package that makes projects happen."
About Capital Impact Partners: Capital Impact Partners, formerly known as NCB Capital Impact, is a leader in financial and social innovation for communities. A nonprofit organization and D.C. certified Community Development Financial Institution, we bring our roots in cooperative development, diverse network of partners and problem solving know-how to connect communities to capital and capabilities that together create social change. Learn more at capitalimpact.org.
About Invest Detroit Foundation (Invest Detroit) is a 501(c)(3) organization and CDFI which serves as a leading source of private sector financing utilizing a variety of funding tools through managed for-profit and nonprofit targeted funds to support economic development opportunities in underserved communities primarily in the City of Detroit. Representing $140 million in funds and tax credit allocations, Invest Detroit provides eligible projects or businesses at various stages of development with access to capital. To date the impact of Invest Detroit managed funds has resulted in the creation or retention of more than 4,061 jobs, the creation or renovation of 2,865 housing units, the development of 3,636,037 SF of residential space and 3,060,171 SF of commercial space. Since 1995, Invest Detroit's managed funds have invested $164.5 million which leveraged total investment of $958.0 million. The efforts of Invest Detroit are intended to promote job creation, expansion of the tax base and an improved quality of life for the communities it serves.
SOURCE Capital Impact Partners