December 15, 2016 (Detroit, MI) – JPMorgan Chase & Co. and Capital Impact Partners today joined with Mayor Mike Duggan and local developers to announce the grand opening of The Garland Building at 8044 Kercheval Avenue in Detroit’s West Village. The $1.35 million renovation project is playing a catalytic role in driving inclusive growth through creating jobs and expanding retail and residential opportunities in the neighborhood.
The project will repurpose two burned and irrevocably blighted buildings and reactivate a long-vacant, century old commercial building. The newly-developed Garland Building will include three 1,200/sf residential units, three 1,200/sf commercial spaces and a community courtyard. The location will house multiple local businesses, including a salon—Village Parlor—as well as Motor City Match applicant, Geiger Eat Shop. The Motor City grant of $85,000 will be used for building renovations.
In addition to the Motor City Grant, JPMorgan Chase and Capital Impact Partners loaned $1 million to this project, as part of their collaborative $30 million Detroit Neighborhoods Fund, which is financed by JPMorgan Chase’s $100 million commitment to the city’s economic recovery. The fund also expands on previous work with local organizations, foundations and partner institutions that have deployed financing to help revitalize Detroit. Capital Impact Partners made an additional on-balance sheet loan of $343,000. The remainder of the investment is afforded by the four project developers: Alex DeCamp; Reimer Priester; Charles Dabrowski; and Mark Seppala.
“Detroit’s comeback will be sustainable if we continue to work together and help those who live and work in neighborhoods like West Village. This collaborative spirit is creating economic opportunity in Detroit’s neighborhoods and encouraging others to invest. This approach is a tribute to the Mayor’s leadership and community leaders who will make projects like the Garland Building a success.”Jamie Dimon, Chairman and CEO, JPMorgan Chase
Earlier this year, Mayor Duggan announced a concept to create a series of 20-minute walkable neighborhoods where residents would be able to enjoy all of the amenities of a vibrant urban lifestyle within a 20-minute walk or bike ride from home. The Detroit Neighborhoods Fund will support this effort by financing key multi-unit residential, business and mixed-use developments to add neighborhood density and tie in with major transportation lines and other essential services.
“The redevelopment of these two vacant commercial buildings is another example of how Detroit's turnaround is starting to take hold in more neighborhoods. Thanks to our partners at JPMorgan Chase and Capital Impact Partners, this small business strip will become a great asset to the surrounding community and to our city.”Mayor Mike Duggan, Mayor of Detroit
Neighborhoods like West Village are uniquely positioned to become dynamic, walkable communities because of recent new market activity like new restaurants and retail stores, close proximity to the Riverwalk and Belle Isle Park, as well as both minutes from downtown Detroit and Grosse Pointe. The West Village’s higher employment rates, coupled with lower vacancy rates, presents an impactful opportunity to add housing, improve public spaces and stabilize the historic neighborhood overall.
“This new development continues the tremendous momentum we are seeing across Detroit,” said Melinda Clemons, Senior Loan Officer, Capital Impact Partners. “As the first in a coming series of projects that will radiate out from development in central Detroit to other resurgent neighborhoods, the Garland Building is a true catalyst for a new wave of recent revitalization efforts in this part of the city. As a mission-driven lender we are further excited about the mixed-income makeup of these projects as we look to ensure more inclusive growth Detroit."
"My draw to the West Village was how much this neighborhood has a feeling of community within the city. It is definitely one of the most vibrant areas,” said Greg Reyner, Chef and Owner of Cafe Muse and the soon-to-open Geiger Eat Shop. “What I love so much about the Kercheval location is that it was once a busy commercial district, and the rebirth of this area has helped the Indian and West Village communities to prosper."
Innovative financial solutions like the ones created by the Detroit Neighborhoods Fund provide financing for multi-family residential properties, mixed-use real estate and grocery stores. The goal is to increase housing options for those with low and moderate incomes and help eliminate areas with limited access to fresh, healthy foods. The fund is capitalized through a $20 million investment by JPMorgan Chase, as part of its $100 million Detroit commitment, and $10 million by Capital Impact Partners.
In October, JPMorgan Chase also announced $5 million as part of its national PRO Neighborhoods initiative to support a $30 million Strategic Neighborhood Fund that will drive economic opportunity in the West Village, Southwest Detroit and Livernois-McNichols neighborhoods over the next five years. This fund is a collaborative partnership between Invest Detroit, the Detroit Development Fund and Opportunity Resource Fund that is dedicating critical resources towards commercial and residential real estate, jobs, and community infrastructure in these neighborhoods.
About Capital Impact Partners
Capital Impact Partners transforms underserved communities into strong, vibrant places of opportunity for people at every stage of life. It delivers strategic financing, incubates new social programs, and provides capacity-building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the ability to age with dignity. A nonprofit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the last 30 years. Headquartered in Arlington, Va., Capital Impact Partners operates nationally, with local offices in Detroit, Mich., and Oakland, Calif. Learn more at www.capitalimpact.org
About JPMorgan Chase
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.JPMorganChase.com.