Investment Highlights
Providing financing for real estate projects in low-income communities is one of LISC's core activities. Below are featured project investments:
LISC Provides Financing to Revive “The Hipp”
Project Name: Hippodrome Theater
Total Development Cost: $10.8 million
LISC Financing:$600,000
LISC Local Office: Virginia LISC
Once host to Ella Fitzgerald, Ray Charles and Duke Ellington, the Hippodrome Theater (the Hipp) in Richmond, VA re-opened its doors in October with the help of a $300,000 LISC loan. The renovation of the Hipp not only reintroduces a historic entertainment venue to Richmond but will act as a springboard for further redevelopment in an area formerly known as the “Harlem of the South.” Local developer Walker Row Partnership, Inc is the project sponsor and theater entertainment will be managed by The Bensusan Group, which also owns the Blue Note and BB King nightclubs in New York among others. This loan adds to a list of several that LISC has made to help restore historically African-American theaters in the United States, including the Apollo in Harlem and the Howard Theater in Washington, DC.
Limited financing options brought on by the credit crisis put the project in jeopardy for several years. “Bookending” the project, LISC remained a consistent partner throughout the development process by providing an early stage $300,000 predevelopment loan in 2008 and providing the most recent $300,000 loan for kitchen upfit and equipment, allowing the Hipp to move toward full scale operations. The entire project included the restoration of the 26,000 square foot Hippodrome Theater and the adjacent Taylor Mansion, which has been converted to a restaurant and “speakeasy” lounge, in addition to 28 new affordable rental units and retail space. The building, theater and lounge operations will create 41 full-time and 40 part-time jobs. The Jackson Ward neighborhood where the Hipp is located was once home to a prominent and bustling African-American community. After suffering from population decline and disinvestment in the 1950’s, the neighborhood has seen efforts to revitalize its fabric in the last few years.
This loan was originated out of the Virginia LISC office and builds upon LISC’s Building Sustainable Communities strategy, a comprehensive approach to community development focusing not just on housing but also the social and economic factors that lead to thriving neighborhoods. Now that the Hippodrome has officially opened for business, it again has the opportunity to become a vital component of the arts and culture environment of Richmond.
With total development costs of approximately $10.8 million, additional funding for the mixed use Hippodrome project was received from the Walker Row Partnership, the City of Richmond, and state and federal historic credits. Permanent financing was provided by the state’s housing finance agency.
LISC Provides $2.25 Million Loan to Improve Healthcare Access in Washington, DC
Project Name: South Capital Health Center
Total Development Cost: $24.5 million
LISC Financing: $2.25 million
LISC Local Office: Washington DC LISC
Community of Hope, Inc. (COH) is a Washington, DC-based nonprofit working to improve the health and quality of life of low-income, homeless and underserved populations in the District of Columbia. COH provides healthcare, housing with supportive services, opportunities for educational advancement and spiritual support to its target population.
The health care needs of the neighborhoods east of the Anacostia River in southeast Washington, DC are chronic (e.g. diabetes, heart disease, HIV/AIDS) yet most households lack access to proper medical care. In response to this need, COH decided to develop the South Capitol Health Center (SCHC) in the Bellevue and Congress Heights neighborhoods of southeast Washington, DC. The Center will provide primary care, mental health services, dental care, health education and an array of social services to both uninsured and insured patients. The new facility, which is slated to open in 2013, will be a 50,000 square foot LEED certified medical center.
To finance the construction of the Center, LISC recently closed a $2.25 million loan, which was originated out of the Washington, DC LISC office. The 18 month loan will bridge expected capital campaign contributions. Additional funding for the $24.5 million project will come from a $15.4 million grant from the DC Primary Care Association and a $6.25 million grant in Federal Affordable Care Act capital funds. Previous LISC support to this project was in the form of two grants totaling $75,000 for consultant services to begin the capital campaign and the cost of establishing a temporary medical center at a neighborhood church.
The SCHC project will create 200 construction and 90 permanent jobs. During the first year of operations the center will serve 4,400 patients and see up to 30,000 visits.