Connecting Developers of Color To Capital
In an effort to support a more diverse pool of local real estate developers, Capital Impact Partners has launched the $12.5 million Diversity in Development – Detroit Loan Fund.
This fund provides a new tool to increase Capital Impact’s long-time commitment to equitable development and inclusive growth in Detroit, by deploying low-cost and flexible construction financing to minority developers who live in and around Detroit — with a preference given to graduates of Capital Impact’s Equitable Development Initiative.
It is our goal to create pathways of success for those developers who have not been able to enter the real estate industry due to lack of capital, equity, and experience as a result of structural racism and disinvestment. In doing so, we can help ensure Detroit’s developers are more representative of the residents who make up a majority of the population.
Key features of the Diversity in Development Loan Fund:
- Loans up to $5 million
- Up to 100% Loan-to-Value
- Loan terms between 2 and 10 years
- Amortization up to 35 years
- Equity requirement as low as 5% of project costs
*Please download fact sheet to see full terms
Advantages of borrowing through Capital Impact Partners:
- With an office in Detroit, we have invested more than $250 million locally to projects including mixed-use developments, multifamily affordable and workforce housing, health care facilities, healthy food businesses, and education facilities.
- Through our Equitable Development Initiative, we are experienced working with minority developers in Detroit and are familiar with local market conditions.
- Our on-the-ground team and local partnerships allow us to leverage our networks and resources for broader impact.
- As a mission-driven organization, we are committed to supporting projects that create social and economic justice.
Capital Impact is another CDFI that I can depend on that is all about creating more opportunities for equitable development...[their projects] are an example of investing in the neighborhood.
City of Detroit
STORIES OF IMPACT
Developer Spotlight: Richard Hosey
When Richard Hosey returned to his hometown in 2008, the economic downtown had completely changed the city he remembered. Now the Detroit native has focused his efforts to returning the city to its former greatness.
Supporting Inclusive Growth
Cliff Brown has partnered with Capital Impact for many projects including The Coe, a mixed-use development in the West Village, while also serving as mentor in Capital Impact Equitable Development Initiative.
Equitable Development Initiative
In an effort to better ensure that real estate developers of color in Detroit are able to participate in the city’s revitalization in a way that reflects the city’s diversity, we launched the Equitable Development Initiative.