Entrepreneurs Nikia Londy and Baron Langston just saved their own business and four of their retail neighbors from displacement, creating what they like to call the “first Black-owned block in Hyde Park.” The couple, owners of Intriguing Hair, purchased the building their store is located in with subsidy from LISC and the City of Boston, and a below-market purchase price from seller, Historic Boston, Inc.
The acquisition nearly certainly prevented the displacement of the five existing commercial tenants, four of whom are Black-owned businesses (including the borrower’s own business) and 3 residential households by a market purchase of the building. Instead, the retail businesses will stay at affordable rents, 3 of the 4 residential units will be restricted as affordable in perpetuity, the borrower’s business real estate costs will be stabilized long term, and they are positioned to build wealth through real estate ownership.
This transaction demonstrates the potential for modest subsidy to make real estate ownership possible for small business owners of color as a way to strengthen their businesses, grow wealth through real estate ownership and prevent displacement of residents and businesses. LISC and our partners in the Coalition for an Equitable Economy are seeking public funding for this purpose as part of a $300 million Small Business Relief and Recovery Fund. Governor Charlie Baker recently introduced a supplemental appropriations bill that includes $80 million to support transactions like this. In this case, LISC’s gap financing was made possible by a grant from Massachusetts General Hospital, a portion of which contributed to the financial feasibility of the affordable housing created by this transaction. Debt financing was provided by Massachusetts Housing Investment Corporation (MHIC), with MassDevelopment providing a partial loan guaranty.
Intriguing Hair which, offers hair, specialty wigs, and extensions, including for people with medical hair loss, previously received recovery grants from LISC, and participated in LISC’s Beyond Six Feet Apart accelerator program for entrepreneurs of color seeking to reopen safely and pivot their business in response to pandemic challenges. Now, LISC will work with the new owners to support their success as commercial landlords.
Read more about the purchase below: