Citi and Next Street Structure New Markets Tax Credit Transaction to Finance 4469 Broadway, a Mixed Use Development

NEW YORK--(BUSINESS WIRE)--Citi Community Capital (Citi), Next Street, Carver Community Development Corporation and NCIF joined Jackson Development Group to announce the closing of permanent financing for 4469 Broadway. This recently-completed 8-story residential and commercial building is located at West 192nd Street and Broadway in the Washington Heights neighborhood of Upper Manhattan.

“In today’s market, financing for mixed use development is extremely challenging, even more so when that project is located in lower income communities. Next Street is incredibly proud to have secured both senior leverage debt and tax equity to help our client rebuild this block of Washington Heights”

This new development consists of 85 units of affordable and workforce rental housing; a new home for a Columbia University-affiliated Head Start program that serves more than 300 young children; 8,500 sq ft of retail space occupied by Deals, a Dollar Tree Stores retail chain; a 60-space parking garage; and office space. An estimated 135 construction jobs were created, and the project is expected to lead to more than 100 permanent jobs.

“This project is an example of our continued commitment to improving New York’s neighborhoods by bringing in a combination of much needed affordable housing, retail and community services. Our financing partners did an excellent job of stepping up and putting their resources back into communities that they serve,” said Neil Weissman, principal, Jackson Development Group.

“My colleagues at Citi and I are excited to have played a role in financing this important project,” said William Yates, director, Citi Community Capital, “Faced with a tight deadline, the project sponsors and our financing partners truly came together and managed to close a very complex transaction. Our role in this project is emblematic of Citi’s commitment to lend and invest in the communities where we do business.”

Permanent financing for 4469 Broadway was structured through the New Markets Tax Credit Program, a federal initiative designed to spur new or higher investments in businesses and real estate projects located in low-income communities. Citi provided $10.2 million in equity and a 7-year $17 million leverage loan for the project.

“In today’s market, financing for mixed use development is extremely challenging, even more so when that project is located in lower income communities. Next Street is incredibly proud to have secured both senior leverage debt and tax equity to help our client rebuild this block of Washington Heights,” said Gloria Lee, Partner, Next Street, which served as advisor to Jackson Development Group.

“The 4469 Broadway project is an example of catalytic community development through partnership. Carver had the pleasure of working with Jackson Development, Next Street, NCIF, and Citi, all trusted community partners that came together with one goal. Through patient capital and financing expertise from Citi, Carver continues its more than 60-year mission of working with community partners to meet the financing needs of the underserved in the Washington Heights community,” said Blondel A. Pinnock, President, Carver Community Development Corporation.

Saurabh Narain, Chief Executive with National Community Investment Fund summed it up with, “NCIF is a proud participant in this high-impact transaction that will bring much-needed affordable housing and early childhood education to the Washington Heights community. NCIF would like to thank all the project partners, particularly Carver, an NCIF investee and a community development anchor in low- and moderate-income communities throughout New York City.”

About Citi Community Capital

Citi Community Capital (CCC) is a premier financial partner with nationally recognized expertise in financing all types of affordable housing and community reinvestment projects. CCC's origination, structuring, asset and risk management staff across the country provides creative financing solutions designed to meet their clients' needs. CCC helps community development financial institutions, real estate developers, national intermediaries and nonprofit organizations achieve their goals through a broad, integrated platform of debt and equity offerings. Additional information may be found at www.citicommunitycapital.com

About Next Street

Next Street was founded in 2005 on the idea of providing growing companies in urban markets with the same level of expertise that investment banks, Madison Avenue, and the elite consultancies provide to Fortune 500 companies. Next Street portfolio companies now generate $600 million in annual revenues and employ over 4,000 people. Most are located in low-income areas. Two thirds are women- or minority-owned businesses. One third are nonprofit organizations. The firm has worked with over 100 small businesses to date. To learn more about the firm’s clients, partners and capabilities, please visit www.nextstreet.com.

About Jackson Development Group

Jackson Development Group, LTD., including its construction division, Jackson Builders, LLC, is a New York-based real estate development company specializing in residential and mixed-use commercial construction. The principals of JDG have been pioneering innovative development strategies since 1996.

About Carver Bancorp, Inc.

Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates nine full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. For further information, please visit the Company's website at www.carverbank.com.

About NCIF

National Community Investment Fund (NCIF) is a non-profit private equity trust fund established in 1996 to invest private capital in CDFI-certified banks around the country that have a mission of economic and community development. NCIF is the largest investor of equity in CDFI banks (by numbers) in the country and has provided thought leadership by developing its proprietary Social Performance Metrics methodology – a tool that enables investors measure the social and economic development impact of CDFI banks. NCIF is also focused on strengthening the capacity of the banks in the NCIF Network. Total assets under management are approximately $150 million including $128 million of NMTC allocations.