Transforming neighborhoods, growing small businesses, bringing back residents and maintaining the dynamic momentum that’s underway throughout Detroit depends on many ingredients—not least of which is investment capital.
JPMorgan Chase has invested in numerous community development projects in Detroit – from charter schools and health clinics to grocery stores and affordable housing. This 50 million dollar grant will significantly expand our community development work with two leading nonprofit Community Development Financial Institutions (CDFI). Invest Detroit and Capital Impact Partners are two of our firm’s proven local partners, whose deep expertise in Detroit will enable them to deploy this capital to finance the most critical elements of economic recovery across the city.
JPMorgan Chase’s flexible, long-term debt capital will enable both organizations to create a fund to finance community development projects in and adjacent to Detroit’s urban core, where there are corridors of economic activity. Additionally, these investments are designed to allow the CDFIs to grow in a sustainable and scalable manner, enhancing their ability to attract future investment and have even broader economic impact for decades to come.
Why we are partnering with Invest Detroit
For the past 20 years, Invest Detroit has been a leading source of private sector financing to support economic and community development in the city of Detroit. Working in concert with local community organizations and utilizing a variety of funding tools, Invest Detroit has developed strong collaborative partnerships to promote strategic initiatives for the creation of density and sustainability in Detroit’s Greater Downtown neighborhoods. Invest Detroit’s financing of commercial, retail and residential development has leveraged more than $1 billion of total investment and is aligned with the priorities of the Transit Oriented Development strategy now underway and the Detroit Future City Framework, which provides a long-term economic growth blueprint for Detroit. In 1995, JPMorgan Chase became one of Invest Detroit’s first investors and, with this new commitment, is proud to become the organization’s largest private investor.
What difference will our investment make?
"The city of Detroit is at a critical juncture and the moment of opportunity is now. The investment capital provided by JPMorgan Chase will serve as a vital resource for renewal by strengthening the platform for development of residential, commercial and mixed-use projects. We greatly appreciate the firm’s trust and support."
By providing a significant increase to Invest Detroit’s capacity, JPMorgan Chase’s investment will greatly enhance the organization’s reach and enable it to create the $20 million Chase Invest Detroit Fund to help finance new high-quality residential, commercial and retail developments in Detroit’s neighborhoods, as well as provide small and medium-sized businesses with the flexible capital they need in order to grow and expand in Detroit.
Importantly, our investment will facilitate early-stage development of real estate projects – a critical juncture but also the riskiest, which often makes it difficult for developers and community organizations to secure financing. Assembling parcels of land and under-used buildings, developing plans and specifications for future projects, and getting development teams in place all take capital well before there is a traditional construction loan. Our flexible capital will enable important projects to get off the ground – and will help put key neighborhood assets back into their highest and best adaptive reuse, acting as catalysts to attract additional investment.
Why we are partnering with Capital Impact Partners
Capital Impact Partners is a leading national CDFI that also brings deep experience in Detroit, with a focus on catalyzing economic revitalization and re-densifying Detroit’s urban core. Since 2007, Capital Impact’s financing in Detroit has created more than 1,000 jobs, added 2,000 charter school seats; built 60 units of housing, with 200 more units coming available in 2014; and expanded a healthcare center that serves more than 5,000 people annually. JPMorgan Chase has worked with Capital Impact for more than two decades on numerous projects across the United States, including in Detroit, partnering to build mixed-income, multi-family housing; grocery stores; healthcare clinics; charter schools; and community facilities.
What difference will our investment make?
"Our partnership with JPMorgan Chase is another step toward helping to re-densify and revitalize Detroit. It,s exciting to work with a company that recognizes this city's potential and is willing to invest the capital required to create real change that drives long-lasting positive social impact."
JPMorgan Chase’s $20 million investment will enable Capital Impact to expand its reach by creating the Detroit Neighborhoods Fund, which Capital Impact will immediately supplement with an additional $10 million investment from its own funds. The $30 million fund will focus on providing permanent financing for the rehabilitation and new construction of mixed-use and multi-family housing developments across multiple neighborhoods in Detroit. Capital Impact will support a combination of affordable and market-rate housing, both of which are in high demand – and are critical elements to revitalizing communities. Additionally, Capital Impact will finance the creation of mixed-use developments that will include commercial elements such as grocery stores and other retail establishments, along with healthcare providers and other services that are essential to end-to-end community development.