April 2023 Loan Round-up May 1, 2023

In April, IFF closed loans totaling approximately $10.5 million for eight community-driven projects in the Midwest. We’ve included information below about several of the loans and what the organizations that received them are doing with the capital. To learn more about IFF’s lending, visit our Capital Solutions page.

Commongrounds Cooperative

IFF closed a $1.5 million loan that provided Commongrounds Cooperative with the capital needed to complete the construction of a 48,000-square-foot facility in Traverse City, MI, that will include a variety of community assets (featured in the photo above). Owned by more than 900 community members through a cooperative model, the building houses local nonprofits and organizations within the arts, food, and health sectors, along with an early childhood education center with up to 28 slots for local children and 18 affordable housing units. IFF previously provided a $1.5 million loan for the $17.46 million project in February 2021, and the recent loan offset increased construction costs associated with the COVID-19 pandemic. Read more about the project in our story, “Commongrounds Cooperative Puts Community First in Traverse City.”

Magnus Capital Partners

IFF closed a loan of approximately $4.5 million for a subsidiary of Magnus Capital Partners that provided the developer with the capital needed to acquire a property in Holland, MI, and to fund predevelopment activities for a project that will create 205 units of affordable rental housing as part of a workforce residential community. The housing will include 65 one-bedroom apartments, 110 two-bedroom apartments, and 30 three-bedroom apartments, with a mix of market-rate units and units affordable to residents earning between 40 and 80 percent of the Area Median Income (AMI).

Planned amenities include indoor and outdoor playgrounds, outdoor seating areas, firepits, walking paths, dog parks, pickle ball courts, a fitness studio, bicycle storage rooms, and co-working spaces with free Wi-Fi, printing, and conference rooms. Public transit is also easily accessible from the planned location for the development, providing residents with access to community assets like grocery stores, pharmacies, public parks, and schools.

The project will receive 4% Low-Income Housing Tax Credits (LIHTCs), with additional sources of funding and financing including a loan from the Michigan State Housing Development Authority (MSHDA) and MSHDA HOME/Mortgage Resource Funds gap financing, among others.

South Shore Chamber Community Development Corporation

IFF closed a $600,000 loan that provided South Shore Chamber Community Development Corporation (SSCCDC) with capital for the acquisition of a multi-tenant commercial building in Chicago’s South Shore neighborhood and to support predevelopment activities as the organization prepares to renovate the facility. Once completed, the building will provide office space for SSCCDC and the South Shore Chamber of Commerce (its sister-agency), while also housing three tenants in ground-floor storefronts whose lease payments will create a new revenue stream for the organization.

SSCCDC (formerly known as South Shore Chamber, Inc.) is a nonprofit founded in 1999 and dedicated to revitalizing the South Shore’s business districts that serves as the convening body and fiscal agent for the community’s quality of life plan. SSCCDC is a delegate agency for the City of Chicago and offers technical aid and financial assistance to local business owners and aspiring entrepreneurs; and collaborates with Sunshine Enterprises to offer a 12-week business training program for local artists.

In its new facility, SSCCDC will provide a pop-up kitchen for aspiring restauranteurs and additional retail space to attract new businesses to the district. Additional sources of funding and financing for the $3.5 million project include seed capital from the City of Chicago’s Neighborhood Development Initiative, a Chicago Recovery/Neighborhood Opportunity Fund grant, and a grant from the State of Illinois’ Department of Commerce & Economic Opportunity.

The SoulFishers Ministries

IFF closed a loan of approximately $148,000 for The SoulFisher Ministries (SoulFisher) that facilitated the nonprofit’s acquisition of a facility in St. Louis, MO, that will be renovated to support the nonprofit’s programming. SoulFisher’s mission is to respond to the needs of youth with incarcerated parents and to promote restorative justice for those currently or formerly incarcerated, and the organization is currently pursuing a significant, multi-year contract to establish residential re-entry centers in the facility it purchased. Services provided will include life skills and goal setting training, case management coordination, relationship restoration, restorative justice opportunities, and access to supportive housing. SoulFisher will serve up to 20 men or women through the re-entry center program.

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