Clopton Siteworks – Unit B in Richmond, VA
Borrower : Clopton Siteworks – Unit B
Where : Richmond, VA
Loan Amount : $622,000
Project Type :Rehabilitation-Reuse; A Historic Tax Credit Bridge Loan
Opportunity
As Richmond manufacturing has evolved, the need for large amounts of warehouse space for the tobacco trade has declined, providing pioneering developers with properties to create innovative new residential, commercial, and industrial spaces.
The Clopton Siteworks development is transforming tobacco warehouses in south Richmond into flexible, modern office and warehouse spaces for a new generation of workers and emerging companies. The project’s ultimate goal is to bring 500 jobs to the Jefferson Davis Corridor. The developer, Lynx Ventures, is a partnership of Rick Gregory, John Gregory and Bernard Harkless (formerly of Fountainhead Development). Knowing Virginia Community Capital shared their mission, Lynx Ventures came to VCC to help realize this vision of revitalization.
Impact
The Clopton Siteworks warehouses are located off a four-mile corridor of Jefferson Davis Highway, an area that is both economically and socially disadvantaged. Most businesses there are a mix of industrial, warehousing, retail and convenience stores, and automobile services. However, the development backed by VCC, Clopton SiteWorks, is a series of large warehouses – many still empty – that are being converted into spaces that will bring emerging companies to this hard-hit area that is beginning to plant the seeds of redevelopment.
The VCC bridge loan will help the developers finance the renovation of two 20,000-square-foot warehouses until the guarantor can use federal tax credits and sell the state tax credits on the project.
Solution
Mission-Focused Lending
Through a partnership with Altria and the City of Richmond, a VCC program has deployed $2 million in loans to small businesses throughout Jeff Davis; the Clopton SiteWorks loan closes out this programming grant. For eligible businesses, the program included a combination of loan capital, interest rate buy-downs, credit enhancements, and financial capital advisory services.