One Year In… Investing in Community Development


Community development is the centerpiece of our Detroit initiative. Through our Chase Community Development Banking business, we have a long track record of lending and investing in Detroit. Alongside our ongoing community development banking work in Detroit, in May 2014 we committed an additional $50 million to two leading community development financial institutions (CDFIs) – Invest Detroit and Capital Impact Partners – which moved quickly to finance projects and businesses to bolster Detroit’s recovery. One year in, the results have exceeded our expectations.

We provided each CDFI with a $20 million commercial loan to put toward the creation of new loan funds. Our flexible, long-term debt capital has enabled our partners to finance the most challenging kinds of projects: those that would struggle to access traditional financing, but have the potential to transform the city’s urban core and neighborhoods and grow small- and medium-sized businesses.

Alongside debt capital, we provided each CDFI partner with a $5 million grant to support investment in critical projects, pre-development funding and organizational capacity. Both organizations are putting this funding to work, devoting 80% of grant funds to finance projects, and leveraging our funds at impressive ratios of up to 8:1.

Chase Invest Detroit Fund

Invest Detroit

For 20 years, Invest Detroit has been a leading source of flexible financing for economic and community development in Detroit, and its relationships and command of local issues run deep.

The $20 million Chase Invest Detroit Fund, created in 2014 with JPMorgan Chase financing, is now helping finance new, high-quality residential, commercial and retail developments, as well as provide small and medium-sized businesses with the capital they need to grow and expand in Detroit. Projects funded in year one included:

Global Titanium Inc.

OBJECTIVE: Enable metals recycling company Global Titanium Inc. to upgrade capacity and complete construction of an additional manufacturing facility.

TOTAL PROJECT COST:
$2 mm

CHASE INVEST DETROIT FUND:
$1 mm

IMPACT: Expand and upgrade a 50,000 square foot manufacturing facility and enable Global Titanium to expand employment opportunities beyond its workforce of 150.

Global Titanium Inc.

Willys Overland Commercial

OBJECTIVE: Preserve Willys Overland Commercial development, a 50,000 square foot commercial space in Midtown, and complete the build-out of the remaining space.

TOTAL PROJECT COST:
$4.4 mm

CHASE INVEST DETROIT FUND:
$2.2 mm

IMPACT: Maintain and expand key anchors of economic activity in the area. Tenants, which include Shinola and the Jolly Pumpkin, collectively employ more than 85 people.

Willys Overland Commercial

The Shoppes at Woodward

OBJECTIVE: Rehabilitate 62,000 square feet of commercial and storefront retail space clustered around the intersection of West Grand Boulevard and Woodward Avenue in Midtown.

TOTAL PROJECT COST:
$5.5 mm

CHASE INVEST DETROIT FUND:
$660 k

IMPACT: Reactivate 35,000 square feet of currently unoccupied space, remove a blighted structure, create 45 new jobs and rejuvenate the area with retail and residential development.

The Shoppes at Woodward
Visit www.investdetroit.com (Opens Overlay)

Detroit Neighborhoods Fund

Capital Impact Partners (CIP)

Capital Impact Partners (CIP) created the $30 million Detroit Neighborhoods Fund by combining $20 million in debt capital and $4 million in grant funding from JPMorgan Chase with $6 million of CIP’s own funds.

The Fund provides financing for multi-family residential properties, mixed-use real estate, community health centers, charter schools and grocery stores that offer fresh, healthy foods. It aims to add at least 200 units of housing within the city limits, create at least 400 construction jobs and 150 new jobs at constructed retail locations. Projects funded in year one included:

Rainer Court

OBJECTIVE: Restore the historic Rainer Court building and provide additional high-quality housing in the growing Midtown neighborhood.

TOTAL PROJECT COST:
$6.6 mm

DETROIT NEIGHBORHOODS FUND:
$3.7 mm

IMPACT: Create an estimated 25 construction jobs during renovation and 36 units of housing targeting working professionals and students of Wayne State University.

Granada Apartments

OBJECTIVE: Acquire and renovate a two-building, 80-unit, multifamily housing property in a low- to moderate-income neighborhood in Northwest Detroit.

TOTAL PROJECT COST:
$1.5 mm

DETROIT NEIGHBORHOODS FUND:
$1.5 mm

IMPACT: Preserve all 80 units as workforce housing in a neighborhood that offers an award-winning high school, high-quality health center and a new grocery store (scheduled to open in 2015).

Visit www.capitalimpact.org (Opens Overlay)

Chase Community Development Banking

Since the beginning of 2014, our Chase Community Development Banking business has provided nearly $68 million in additional financing for projects aimed at serving the needs of Detroit’s low- and moderate-income communities.

Revitalizing Capitol Park

For example, JPMorgan Chase provided $19.6 million in debt and equity financing to rehabilitate the 1212 Griswold building, Detroit’s oldest surviving skyscraper, located in the historic Capitol Park district. Our investment enabled extensive rehabilitation of the building – re-opened in February 2015 – which now includes office space and 56 units of mixed-income apartments, helping to preserve economic diversity in the area as it rebounds.

In 2015, JPMorgan Chase provided $13 million in debt and equity financing for another Capitol Park project: the renovation of 1145 Griswold, an 11-story building constructed in 1905 that was sitting vacant. When completed in 2016, the building will provide 63 market rate apartment units and nearly 19,000 square feet of commercial space.

Structuring these complex investments took months to coordinate, and our community development team was at the center of the process, managing multiple layers of interlocking financing. Critical to the success of these deals was the partnerships and collaboration between developers, city officials, community nonprofits, historic building preservation groups and other stakeholders.

Rendering of Revitalizing Capitol Park
Visit www.chase.com/cdb (Opens Overlay)