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Nurturing Diverse Real Estate Developers in the Twin Cities

A Minneapolis Post columnist takes an in-depth look LISC Twin Cities’ Development of Color initiative, which has cultivated a cohort of visionary BIPOC developers committed to making a difference in their communities. The program helps equip them with the tools and resources needed to tackle barriers in their markets, including bridging gaps in accessing equity financing, “a key to broadening who works in real estate,” writes the author. “For these developers of color, there’s the equity gap, and then there’s the equity gap. This program is aimed at solving both of those problems.”

The excerpt below was originally published on MinnPost:
Twin Cities org gives tools, support to developers of color
By Bill Lindeke

Picture a real estate developer in your mind, and you’re probably not imagining the folks gathered last month in Minneapolis’ Mill District. In Minnesota, the vast majority of developers, finance, and construction are white men.

If you’re the folks at Twin Cities LISC, the local branch of a national development nonprofit called the Local Initiatives Support Coalition, that’s a problem. LISC has been working for over a year to cultivate cohorts of people of color interested in becoming developers. That’s why they launched a program called the Developers of Color initiative, hosting the recent meet-and-greet. It’s intended to change who’s included in the local real estate conversation. 

“We are a national intermediary, with a goal to elevate and emphasize Black wealth in our communities,” Gretchen Nichols, LISC’s senior program officer, told me. “After George Floyd, we started this work interviewing Developers of Color, to understand the obstacles and challenges they were facing. We designed a program in response.” 

These were not people who lacked experience, but people who needed the extra bit of insider knowledge, and especially the connections, that a group like LISC can provide.

For many organizations in the Twin Cities, the murder of George Floyd reinforced how deep and undeniable inequity has become in the Twin Cities. Twin Cities LISC is a nonprofit ideally placed to intervene in the realm of housing and commercial construction. They’ve been running workshops for over a year, bringing together about two dozen people of color interested in becoming developers. The nonprofit runs trainings, networking events, and provides advice aimed at breaking down barriers for people of color in the Twin Cities’ metro.

“Our first year was fascinating,” said Nichols. “(It was) informative to walk alongside these developers, to watch and observe things they were up against, (and) to figure out how to troubleshoot the things they were struggling through.”

A few months ago, Twin Cities LISC inaugurated their second program cohort, 14 people who have begun getting to know each other and exchanging tips and stories about working in a difficult field.

“There are challenges from the capital side, but also other things,” said Koa Murai, a Senior Program Officer focusing on lending. “We’re growing out of our experiences from last year. This year is to offer more up-front trainings. There were things we noticed people were getting stuck on last year as their projects proceeded.”

Continue to original story on MinnPost [+]...