Capital One announced it has partnered with the Northern California Community Loan Fund (NCCLF) to provide $10.3 million to fund renovations to the SF LGBT Center. The financing includes New Market Tax Credit (NMTC) equity investments, as well as a senior loan and a bridge loan.
The renovations are expected to be completed in early 2017 and will triple the amount of affordable nonprofit office space available for rent at the facility, while helping the Center advance its mission of connecting the San Francisco LGBT community to critical services and providing supportive programs to its most vulnerable members.
Capital One’s Community Finance team took the lead in the transaction, with involvement from the Public Finance, Middle Market NMTC Originations, Global Tax and Community Affairs teams at the Bank.
“This was a great example of multiple Capital One teams working together to achieve a client’s very specific and complex goals,” said Laura Bailey, senior vice president, Community Finance, at Capital One. “Despite many moving parts, we were able to successfully close and underwrite it in a short time frame. Because we recognize the importance of this Center and its mission to the San Francisco community, we also provided philanthropic support for operations and a conventional loan to fund the renovations.”
The Capital One financing included NMTC equity investments, a $4.4 million senior loan, and a $1 million bridge loan. A $3 million NMTC allocation from Capital One Community Renewal Fund was utilized for the transaction and a $163,000 term loan was made directly to the Center from Capital One Community Finance. The Northern California Community Loan Fund, which works to ensure the sustainability of community-based nonprofits by providing flexible financial products, also provided a $7.5 million NMTC allocation.
The NMTC program spurs the revitalization efforts of low-income and impoverished communities by attracting private capital to these areas. Individual and corporate investors receive a tax credit in exchange for making equity investments in Community Development Entities (CDEs), which in turn invest in low-income communities.
“NCCLF is thrilled to partner with Capital One in support of this project,” said Ross Culverwell, NCCLF’s chief lending officer. “The LGBT Center’s renovation plans mean that San Francisco’s LGBT community will receive a more diverse range of services, while the Center, itself, will enjoy a more secure future.”
“The support Capital One and NCCLF have provided the Center during this transformative time for us has been invaluable,” said SF LGBT Center Executive Director Rebecca Rolfe. “Thanks to their help, our continuing work of providing a safe and supportive environment for all LGBTQ people and their allies is entering a new exciting phase. Their financial support and shared belief in our mission will help many organizations being hurt by the affordability crisis in the city and will also improve the lives of thousands of individuals in the Bay Area.”
Located at 1800 Market Street in San Francisco, the Center was founded in 2002 and provides a comprehensive array of direct services and community development programs that primarily serve low to moderate income individuals and families.
The renovations include the interior redesign and rehabilitation of the approximately 37,000 square foot building. These modifications will increase the Center’s cash flow by adding 15,000 additional square feet of rentable office space there, freeing room for Bay-area nonprofits such as Bay Area Legal Aid, the Asian & Pacific Islander Wellness Center, and Aguilas.