PIDC Identifies, underwrites, and approves key neighborhood development and business growth projects in the active pipeline, representing substantial investment in neighborhoods that will generate hundreds of jobs. One key way that PIDC makes key neighborhood development projects happen is through New Markets Tax Credits. New Markets Tax Credits (NMTC) is a federal tax credit program designed to generate private-sector capital investment in low-income areas for projects that develop communities, stimulate economic growth, and create jobs.
Here are some of the transformational projects PIDC has invested in this year with NMTC.
In October, a groundbreaking ceremony was held for Sharswood Ridge. Located at 2077 Ridge Avenue in the North Philadelphia neighborhood of Sharswood/Blumberg, the project is a 234,000-square-foot mixed-use development consisting of 45,000 square feet of retail space which will include Grocery Outlet, Everest Urgent Care, Santander Bank, and Wingstop, to name a few, and 98 mixed-income residential units.
Sharswood Ridge will assist the Philadelphia Housing Authority (PHA) in its ongoing Sharswood/Blumberg Choice Neighborhood Initiative, a comprehensive neighborhood transformation plan designed to elevate the quality of life for local residents through improved housing, local job creation, neighborhood-serving retail, commercial services, and public green space.
The project developer, Sharswood Partners, LLC, is a partnership between PIDC clients Mosaic Development Partners and SHIFT Capital, two Philadelphia-based community-focused developers committed to delivering social impact in underinvested urban neighborhoods. They won the rights to develop the project through an RFP (Request for Proposal) sponsored by PHA. As a model example of creative public-private partnerships, the project received a mix of federal, state, local and private funding that included New Market Tax Credits provided by PIDC and Commonwealth Cornerstone Group that were purchased by Capital One Bank, a PA Redevelopment Assistance Capital Program (RACP) grant, a PA Multimodal Transportation Fund grant, Opportunity Zone Fund capital, as well as PIDC, PHA and Fulton Bank loans.
COBBS CREEK COMMONS
PIDC helped fund the acquisition and renovation of a multi-tenant 37,848 SF commercial building at 100 N 63rd Street in West Philadelphia. The funding enabled the owner of American Power Electrical Supply, a full service, full-line MBE electrical supply wholesale and retail company, to purchase the space the company had been renting and to complete needed capital improvements. Two other small tenants – a community church and Team Clean, an MBE/WBE commercial janitorial services company – will also occupy the building with additional spaces available to lease.
The project received funding from PIDC’s Impact Development Fund, which is an innovative loan program capitalized with New Markets Tax Credits. The Impact Development Fund supports commercial, industrial, and mixed-use development on commercial corridors in Philadelphia’s low-income neighborhoods. With low-cost, flexible loans, the Impact Development Fund provides new capital for neighborhood-based development, driving revitalization in communities that can often be overlooked by traditional lenders and often need that investment most. PIDC also provided an additional loan facility – a Commercial Mortgage Loan – to complete the financing.
The funding of this project closes out PIDC’s 2nd Impact Development Fund totaling $5 million. A total of $11 million over our two Impact Development Funds has been invested in eight projects across Philadelphia. PIDC is launching its 3rd Impact Development Fund in 2021. Contact Sarah Stroney at firstname.lastname@example.org or Lawrence McComie at email@example.com for more information about financing.