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New Markets Tax Credits News Briefs - February 2010

The YWCA Greater Los Angeles secured $70 million in new markets tax credits (NMTCs) to finance a new downtown facility that will provide job and placement opportunities to area youth. The new campus is the first development funded by the Los Angeles Development Fund (LADF), established in 2007 to manage the city's NMTC program. LADF made a $20 million equity investment in the $73 million undertaking; Enterprise allocated $15.5 million and LISC invested $15 million. In addition, Bank of America Merrill Lynch invested $20 million in NMTCs from its sub-allocation and provided construction and permanent loans. The 155,000-square-foot building will enable the YWCA to consolidate into one central location the six sites currently being used for Job Corps' housing and services. Features will include a commercial kitchen for culinary training, a dining hall, classrooms, a health suite and an exterior courtyard. Four floors will be residential, with 200 dormitory-style rooms, lounges, laundry facilities and study rooms for 400 Job Corps trainees.


Enterprise Community Investment Inc. closed an $11 million transaction in December that will finance the rehabilitation and expansion of a former streetcar repair facility and create the Green Park Broadway development in St. Louis, Mo. The industrial building will include a multi-tenant service center and office space in the North Riverfront Business Corridor. Green Park Broadway is Enterprise's first deal to close as part of its $95 million NMTC allocation awarded last year through the American Recovery and Reinvestment Act (Recovery Act). U.S. Bancorp Community Development Corporation (USBCDC) served as the NMTC investor and Pulaski Bank provided leveraging loans. The developer, Green Street Properties LLC, will use recycled materials, natural lighting in the warehouses, non-volatile organic compound paints and provisions to limit storm water run-off.


On December 30, 2009, Advantage Capital Partners announced that it had provided $7.1 million in financing to Chicago-based Allen Brothers Inc., a leading supplier of USDA Prime grade beef. The funds will be used to support the company's continued growth, with new jobs being created in the coming months. Advantage Capital, in participation with Old Second National Bank of Aurora, Ill., provided financing in connection with the Illinois New Markets Development program and the federal NMTC program. The financing marks the first significant investment that Advantage Capital has made in connection with the state's new markets program. Mark B. Lewis, an Advantage principal, says the mezzanine financing will be used to fill a financing gap and provide liquidity. Founded in 1893 in Chicago's historic Union Stockyards, Allen Brothers has built a reputation for providing high quality beef products to fine dining restaurants and direct-to-consumer channels. The company supplies prime aged cuts to many of the country's top steakhouses, including Morton's, Lawry's and Delmonico's.


Recovery Café, a Seattle, Wash., alternative therapeutic community that supports persons recovering from homelessness, addictions and mental health challenges, received $9.79 million from NCB Capital Impact to secure a new location for its recovery services. NCB Capital Impact financed the acquisition of two land parcels and helped renovate a historic building with NMTCs made possible by the American Recovery and Reinvestment Act (Recovery Act). The financing allows Recovery Café to triple the number of people currently receiving assistance.

Journal Category:

New Markets Tax Credit



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