JPMorgan Chase Celebrates Opening of the Latest Community Development Project Financed by $100 Million Commitment to Detroit’s Recovery
Nine JPMorgan Chase-financed Detroit housing, manufacturing, healthy food and retail projects open, break ground or expand in 2015
Detroit, September 17, 2015 – JPMorgan Chase & Co. today joined with partners from PK Housing, Midtown Detroit, Inc., Capital Impact Partners, Invest Detroit and Detroit Economic Growth Corporation in announcing the grand opening of the latest community development project in Detroit financed by the firm’s five-year, $100 million commitment to the city’s economic recovery. Rainer Court, at 711 West Alexandrine Street, adds 36 units of working professional and university student housing as well as 1,800 square feet of retail space in Detroit’s growing Midtown District.
“Detroit is coming back, and our investments are making a real impact on creating economic growth across the city and providing greater opportunity for more people,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “Rainer Court is a great example of how the right kind of capital, partnerships and deep community expertise can produce quality housing for Detroit’s hardworking residents. From Midtown to the neighborhoods, we’re excited to see our investments continue to catalyze Detroit’s recovery.”
Detroit Investment Vehicles
Through its Chase Community Development Banking business, JPMorgan Chase has a long track record of lending and investing in Detroit. Alongside this work, JPMorgan Chase committed an additional $50 million, as part of its $100 million commitment to Detroit, to two leading Community Development Financial Institutions (CDFIs) – Invest Detroit and Capital Impact Partners. Taken together, the firm has provided over $80 million in financing since 2014, bolstering the city’s infrastructure and creating economic opportunity for Detroit’s low-and moderate-income communities.
In 2015, nine Detroit projects are opening, breaking ground or expanding as a result of financing directly from Chase Community Development Banking and from the CDFIs supported by the firm’s $100 million commitment.
Invest Detroit and Capital Impact Partners are specialized financial institutions that provide financing to community projects that would otherwise not qualify for traditional loans. Both institutions are receiving long-term, flexible debt capital from JPMorgan Chase to invest in mixed-use, mixed-income real estate and small business projects across Detroit. Over the past sixteen months, Invest Detroit and Capital Impact Partners have deployed $12.5 million to seven projects that will help strengthen Detroit’s economy. To date, the two funds have used JPMorgan Chase’s resources to leverage an additional $18.5 million.
Separately, Chase Community Development Banking has provided nearly $68 million in financing since the beginning of 2014 for projects that include market-rate housing and healthy food options through the expansion of local grocery stores.
Northwest Detroit Neighborhoods
Significant work is underway in northwest Detroit neighborhoods to create new housing opportunities and increase access to healthy food options.
In September, a 15,000-square-foot expansion of Banner Grocery will open at 14424 Schaefer Highway. Chase Community Development Banking provided a $1.8 million equity investment in order to provide more accessible, affordable and healthy food to the community. The project will also provide 35 new full-time employment opportunities.
The Granada Apartments, located in Greenfield and Belmont, are also in the process of an 80-unit rehabilitation. Financed through JPMorgan Chase’s $100 million commitment, the 54,000-square-foot update, a joint project between the firm and Capital Impact Partners, will add 200 units of housing, creating a minimum of 400 construction jobs and 150 new jobs at constructed retail locations.
“Our Detroit Neighborhoods Fund, set up through JPMorgan Chase's investment, is proving to be a real catalyst in our efforts to support Detroit's revitalization,” said Terry Simonette, President and CEO of Capital Impact Partners. “In just the past year, a number of important mixed-use housing projects have been approved for rehab and construction and will come online over the next couple years, adding to the density and inclusive growth goals we share with our partners in Detroit. JPMorgan Chase’s partnership is vital to Capital Impact's ability to support investment beyond the Woodward Corridor into other mixed-use corridors across the city.”
In addition to financing the redevelopment of Rainer Court, JPMorgan Chase is supporting additional projects in Midtown to promote economic growth.
Construction is already underway on two JPMorgan Chase-supported projects that aim to provide quality housing and better transportation for Detroit residents. In 2014, the firm provided $15 million and facilitated $42.4 million in New Markets Tax Credits to complete the financing for the M-1 rail, the 3.3-mile light rail project that will connect Downtown to the Cultural District. Over and above the $100 million commitment, the firm has also provided $32 million in debt and equity financing for Capitol Park Lofts at 1145 Griswold Street and Detroit Savings Bank at 1212 Griswold Street. The two buildings will create 119 units of housing and over 62,300 square feet of retail and office space.
Construction will soon begin on The Plaza, the newest commercial project from JPMorgan Chase’s $100 million commitment. Currently vacant, 3800 Woodward Avenue is a unique historic property that is one of the few high-rise buildings close to the M-1 Rail. Financed by Invest Detroit and Capital Impact Partners, using loan proceeds from JPMorgan Chase, the nearly 73,000 square foot, 12-story Midtown building will be renovated to feature 72 market-rate residential units and two commercial units.
Willys Overland Commercial and The Shoppes at Woodward are also aiding the development of the Woodward Corridor. Earlier this year, Invest Detroit used $2.2 million of its JPMorgan Chase investment to finance the improvement and redevelopment of Willys Overland Commercial, a project that created 70 jobs. Willys now provides over 30,000 square feet of retail space for Shinola, Willys Clothing, RUNdetroit and Jolly Pumpkin, which are serving the needs of residents and tourists.
Invest Detroit, using capital from JPMorgan Chase’s $100 million commitment, financed land acquisition and capital improvements to the Shoppes at Woodward, a multi-phase renovation of 62,000 square feet across five buildings. A cornerstone of the Midtown Detroit, Inc.’s master development plan for Midtown, the Shoppes at Woodward will reactivate over 35,000 square feet of unoccupied space, remove blight, create 45 new jobs and provide high-demand retail and residential space in the New Center area.
“JPMorgan Chase’s capital investment in Detroit is greatly enhancing opportunity for renewal in Midtown and neighborhoods that have suffered disinvestment for decades,” said Dave Blaszkiewicz, President and CEO, Invest Detroit. “With their support, we’re accelerating change throughout the city while creating jobs, increasing density, improving sustainability and tailoring efforts to expand assistance to Detroit’s neighborhoods.”
Northeast Detroit Neighborhoods
Invest Detroit, using support from JPMorgan Chase’s $100 million commitment, is also funding a 50,000 square foot expansion of Global Titanium’s Detroit campus located at 19300 Filer Avenue. Global Titanium, which has operated in Detroit for over 75 years, recycles titanium scrap and produces metallurgical products from recycled materials. Global Titanium is currently employing 150 people. The expansion has the potential to employ up to 15 additional full-time employees.
For more information visit: www.magverry.com/detroit.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.4 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.magverry.com.