Triangle Plaza Hub
CDEs: GS New Markets Fund LLC, Low-Income Investment Fund New Markets LLC and National Community Fund I LLC
Developer: Triangle Equities
Owner: Triangle Equities
Location: Bronx, N.Y.
The winners of the 2014 Real Estate QLICI of the Year Award are GS New Markets Fund LLC, Low-Income Investment Fund New Markets LLC (LIIF) and National Community Fund I LLC (NCF) for their investment in the Triangle Plaza Hub in the Bronx, N.Y. The Triangle Plaza Hub development will transform a municipal parking lot into an 88,000-square-foot mixed-use commercial and community facility. The plaza will include a Fine Fare supermarket and the permanent campus for the Metropolitan College of New York, a nonprofit college for working adults.
The development of Triangle Plaza Hub will bring much-needed job opportunities and community amenities to a highly-distressed neighborhood, said Margaret Anadu, managing director at Goldman Sachs. The facility is located in an area with a poverty rate of 48 percent, and is expected to create 188 permanent jobs and 151 construction jobs. The developer, Triangle Equities, has partnered with the city of New York and HireNYC, a local career center, to link commercial tenants with local Bronx residents and low-income New Yorkers. This will help local residents access jobs available at the facility. Triangle Equities is also working with a local community group to identify and help ensure meaningful participation of Bronx-based minority and woman-owned enterprises in the construction of the project.
The total financing package for the development totaled $35 million and included new markets tax credit allocations from LIIF, NCF and GS New Markets Fund. Goldman Sachs provided a $14.75 million leverage loan, a $10.3 million NMTC equity investment and $3.0 million direct equity investment. LIIF provided a $5.75 million leverage loan through the New York Healthy Food Healthy Communities (HFHC) Fund and also contributed a $300,000 grant from the HFHC Fund.
The flexible terms of NMTC financing opened up several opportunities for Triangle Equities. First, lower debt service coverage and lower interest rates allowed Triangle Equities to provide favorable leases, attracting more commercial tenants. Financing terms enabled Triangle Equities to sell an office condominium at a price significantly below market rate to the Metropolitan College of New York. Triangle was also able to move forward with plans to become LEED Silver certified, which will provide long-term benefits for the building's workers, savings for the tenants and will reduce the building's environmental impact.