Broadway Marketplace at the George Washington Bridge
CDEs: Low Income Investment Fund, DV Community Investment LLC (DVCI) and GS New Markets Fund
Developer: SJM Partners Inc. and Slayton Ventures
Owner: Port Authority of New York and New Jersey
Location: New York, N.Y.
The winners of the 2014 Metro QLICI of the Year Award are Low Income Investment Fund (LIIF), DV Community Investment LLC (DVCI) and GS New Markets Fund for their investment in Broadway Marketplace at the George Washington Bridge in New York, N.Y. The $19.5 million in equity raised by new markets tax credits (NMTC) will be part of a $183 million redevelopment effort by the Port Authority of New York and New Jersey to revitalize the George Washington Bridge (GWB) Bus Station, a transportation hub in New York City. Amy Laughlin, director of new market tax credits at LIIF, said the station, which serves an average of 20,000 commuters per day, has suffered from decades of disrepair.
Co-developers SJM Partners Inc. and Slayton Ventures plan to revitalize the station's infrastructure and retail services, while also increasing the public safety around the terminal. The plans include 130,000-square-feet of redeveloped retail space anchored by a 15,000 square-foot supermarket.
The redevelopment of Broadway Marketplace at George Washington Bridge will bring community and economic benefits through job creation to a highly-distressed census tract in Upper Manhattan. Laughlin says nearly 20 percent of the households in the area are living at or below the poverty line, and the unemployment rate is more than 1.5 times the national average. The development is expected to create more than 450 temporary construction jobs and 250 permanent jobs, 80 percent of which will employ low-income individuals. In addition, a large percentage of the retail spaces will be targeted towards minority or women-owned businesses.
The project will also provide new retail venues and serve as a large-scale destination and neighborhood center. The supermarket will improve the healthy food access for the local community. Additional community services include a bank and fitness center. Developers are also extensively renovating the immediate areas surround the station. Laughlin says the new features, which will include energy-efficient lighting and updated security systems, will provide increased safety for local residents.
The development received funding from public and private sources. LIIF provided a $10 million leverage loan through its New York Healthy Food & Healthy Communities (HFHC) Fund and a $5 million new markets tax credit (NMTC) allocation, DVCI provided a $9.5 million NMTC allocation and Goldman Sachs provided a $5 million NMTC allocation and an equity investment. The NMTC allocations provided flexible terms, such as higher LTV and lower rates, which allowed the owner to provide favorable lease terms for attracting commercial tenants. Additional funds include debt raised by the New York City Regional Center through the Immigrant Investor Program, often known as EB-5.