Innovative, Two-Year Pilot Program Provides
Critical Capital and Training for Next Generation of Developers
Today, Capital Impact Partners—with support from JPMorgan Chase
& Co.—announced a new $5 million program committed to help more
minority real estate developers participate in Detroit’s continued
economic recovery by providing them with critical training
opportunities and access to capital. The program will help 15-20
new minority developers help their businesses grow.
As part of the firm’s $150 million investment in Detroit’s
recovery, JPMorgan Chase has committed to a $500,000, two-year
investment in Capital Impact’s Equitable Development Initiative.
This program will provide a combination of catalytic capital,
one-on-one mentorship with local experts, and formalized training
to bolster inclusivity within Detroit’s real estate market. The
two-year program is designed to kick-start the development of
small- and mid-sized mixed-use, multi-family residential projects
in the city’s mixed-use corridors and is aligned with Capital
Impact’s mission—helping people build communities of opportunity
that break barriers to success.
Nationally and locally, minority developers are often
underrepresented in the broader real estate development industry.
In fact, Capital Impact realized of the $152 million it loaned in
Detroit between 2006 and 2015, projects led by minority developers
received approximately 1/10th of that financing.
“Capital Impact recognizes the disparities minority developers
face in Detroit, and likely across the country. There is a need for
increased support to better ensure real estate developers of color
who represent the Detroit diversity are able to participate in the
city's revitalization,” said Melinda Clemons, Detroit Market
Lead, Capital Impact Partners. “We’ve seen success in the
implementation of similar type programs in other cities like
Milwaukee and Los Angeles and are confident this new effort will
ensure that the brick-and-mortar development component of Detroit’s
economic growth continues to be inclusive.”
Together, Capital Impact, JPMorgan Chase and several other
organizations critical to the introduction of the Equitable
Development Initiative—including partners within Detroit’s CDFI
community, city government and National Development Council—will
support budding minority developers by providing them with
mentorship, management training and low-cost capital to develop
real estate projects in Detroit’s neighborhoods. The resources will
help participants with project budgeting, real estate finance,
project and contractor management, legal services and community
engagement.
“This critical capital and training for new developers will help
more Detroiters share in the city’s continued comeback,” said
Peter Scher, Head of Corporate Responsibility, JPMorgan
Chase. “It’s catalytic programs like this that will drive
faster and more inclusive benefits in the neighborhoods where
mixed-income housing is critically needed to ensure sustainable
growth.”
There are approximately 50,000 minority-owned small businesses
in Detroit, making it the fourth largest city for minority
entrepreneurship. As the city’s recovery continues, more developers
are needed for the rehabilitation and construction of housing in
Detroit’s neighborhoods. Developers in this program will benefit
from the loan funds JPMorgan Chase established with Capital Impact
and Invest Detroit to finance mixed-use real estate, affordable
multi-family housing, and commercial and retail developments in
neighborhoods across the city. An example of this is the Coe
Project in West Village, which is being led by minority developer
Clifford Brown.
The Coe is a 12-unit, mixed-use development with eight
townhouses, four apartments and two small retail units, and is the
first project of Detroit’s Strategic Neighborhood Fund. The project
is supported by Capital Impacts Partners, Invest Detroit, Broder
& Sachse Real Estate and Sachse Construction.
“I am so proud to partner with organizations like JPMorgan Chase
and Capital Impact Partners because together we can turn our vision
into reality so much faster,” said Clifford A. Brown, urban
developer and partner, Woodborn Partners. “As a developer in
the city, I’m excited to show the next generation how much more we
can achieve when we work together.”
To be eligible for the Equitable Development Initiative,
participants must be developers of color from the Detroit area with
some real estate development experience. Priority will be given to
developers planning a 6-20 residential unit, multifamily or
mixed-use development located in strong corridors that align with
the City of Detroit’s targeted redevelopment areas. Developers
without a planned project will also be considered for the
program.
The two-year pilot phase of the Equitable Development Initiative
will support up to 15-20 minority developers through training and
mentorship; Capital Impact also plans to finance a subset of real
estate development projects led by program participants over the
next two years. Applications for the Equitable Development
Initiative are available online here.
This latest investment by Capital Impact and JPMorgan Chase is
in addition to the $30 million Detroit Neighborhoods Fund. The
Detroit Neighborhoods Fund is capitalized through a $20 million
investment by JPMorgan Chase and $10 million by Capital Impact to
provide financing for multi-family residential properties,
mixed-use real estate and grocery stores.
For more information on Capital Impact, visit
www.capitalimpact.com. For information on JPMorgan Chase’s ongoing
revitalization efforts in Detroit, go to
www.jpmorganchase.com/Detroit.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE:JPM) is a leading global
financial services firm with assets of $2.6 trillion and operations
worldwide. The Firm is a leader in investment banking, financial
services for consumers and small businesses, commercial banking,
financial transaction processing, and asset management. A component
of the Dow Jones Industrial Average, JPMorgan Chase & Co.
serves millions of consumers in the United States and many of the
world's most prominent corporate, institutional and government
clients under its J.P. Morgan and Chase brands. Information about
JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About Capital Impact Partners
Capital Impact Partners transforms underserved communities into
strong, vibrant places of opportunity for people at every stage of
life. It delivers strategic financing, incubates new social
programs, and provides capacity-building to help ensure that
low-to-moderate-income individuals have access to quality health
care and education, healthy foods, affordable housing, and the
ability to age with dignity. A nonprofit community development
financial institution, Capital Impact Partners has disbursed more
than $2 billion to revitalize communities over the last 30 years.
Headquartered in Arlington, Va., Capital Impact Partners operates
nationally, with local offices in Detroit, Mich., and Oakland,
Calif. Learn more at www.capitalimpact.org.
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Media:JPMorgan ChaseStephanie Bosh, (202)
585-1382orLE&ASawyer Lipari, (313) 309-9551
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