Financing has closed on the first two projects to receive allocation from the $30 million federal New Markets Tax Credit (NMTC) award that Cleveland Development Advisors (CDA), the Greater Cleveland Partnership’s real estate and business development finance affiliate, received earlier this year.
They are the learning center at the St. Luke’s campus and the redevelopment of the East Ohio Gas Building. The combined $12 million of NMTC allocation leveraged total development of $81 million.
St. Luke’s Campus:
The $16 million east wing of St. Luke’s Manor opened this month, marking the completed $78 million transformation of the vacant 300,000 square foot building and surrounding neighborhood into a community campus.
The renovated space is the new home of Breakthrough Schools’ award-winning The Intergenerational Schools, the Boys and Girls Club of Cleveland, two early childhood classrooms from the Centers for Families and Children, Cleveland Neighborhood Progress, and the Saint Luke’s Foundation.
The first two phases of the project included 137 affordable housing units for seniors, Harvey Rice School and Rice Branch Library, as well as extensive streetscape and public improvements to the Buckeye neighborhood.
East Ohio Gas Building
: The vacant 327,000 square foot East Ohio Gas office building, located in the Nine Twelve District at 1717 East Ninth Street, is being converted into 167 market-rate and 56 affordable apartments as well as more than 16,000 square feet of retail space.
The $65 million project utilized various sources of financing including conventional bank debt, New Markets Tax Credits, City and County financing and state and federal Historic Preservation Tax Credits.
In addition to the Cleveland New Markets Investment Fund II’s $7 million allocation, affiliates of PNC and the National Development Council contributed allocations of $4 million and $8 million respectively.
Both projects encompass the investment goals of CDA, as well as the mission of the NMTC program, and provide economic and community development impacts to the residents of Cleveland. It is indisputable that these projects would not be possible without the NMTCs.