CAHEC New Markets is a certified Community Development Entity that raises capital through the New Markets Tax Credit program to finance community facility projects that aim to create jobs, improve access to educational opportunities, health services, and other critically needed community services and stimulate community expansion in high distress low-income communities. Over the past year, CAHEC New Markets was able to not only close on a project that will provide shelter to women and children in need, but also successfully saw six projects through their seven-year tax credit compliance periods. Below is a description of the recent closing and success stories of two projects that completed their compliance periods within the past year.
CAHEC New Markets’ $170 million of closed NMTC investments have and are projected to help create:
Square Feet of Development
Pre-K-12th Grade Student Seats
Healthcare Patients Served
Wellness/Recreation Center Visitors
Project closed in 2020:
Atlanta Mission Restoration House: Creating safe spaces for women and children
Atlanta Mission is the largest and oldest provider of shelter and services to homeless men, women, and children in Atlanta, Georgia. Originally established as a soup kitchen for men affected by the Great Depression, the nonprofit organization has expanded significantly over the past 83 years to accommodate the growing homeless population of Atlanta. Among the services provided by Atlanta Mission are meals and shelter, counseling, addiction recovery assistance, educational services, and Mission@Work, a comprehensive job and life skills training program. While Atlanta Mission was able to provide 149,609 bed nights and 656,550 meals to displaced individuals last year, it also had to turn away 3,000 women and children in need of shelter due to lack of beds. The Restoration House is a new 45,339 square foot facility, funded in part by CAHEC New Markets which provided $8.5 million of New Markets Tax Credit allocation, set to open in September 2021 that will include 102-beds and serve as the first low-barrier shelter for women and children in Atlanta. As a low-barrier shelter, one that accepts all clients who are not a risk to themselves or others, this project will meet the diverse needs of individuals in an environment with increased security, a high level of staffing, expertise in trauma-informed care, and extended admission hours. In addition to providing shelter, case management, counseling, and employment training, Atlanta Mission is partnering with Saint Joseph’s Mercy Care Services and Community Advanced Practice Nurses, Inc. to provide mental and physical health care services to program participants and community residents. Annually, Restoration House will have the capacity to shelter over 2,250 unique women and children, provide 800 individuals with free mental health services, and allow 60 individuals to participate in the Mission@Work program. Click here to learn more about Atlanta Mission and the Restoration House project.
Success Stories – Investing in opportunity in downtown Durham, NC
Stats at the time of investment:
Poverty Rate: 42.2%
Median Family Income: 51.1%
Unemployment Rate: 21.4%
Investing in anchor institutions to drive holistic economic, health, education, and social growth underlies CAHEC New Markets’ New Markets Tax Credit strategy. In late 2013 and early 2014, CAHEC New Markets supported the development of two new institutions anchoring the highly-distressed census tract encompassing the city’s central business district. Located on opposite sides of downtown, the Carmichael Building and 21c Durham are unique economic catalysts creating new jobs, sparking innovation, and serving as beacons driving both locals and visitors downtown. Both projects completed their New Markets Tax Credit compliance periods in 2020. CAHEC New Markets is proud to have supported the ongoing downtown Durham renaissance and looks forward to how the Carmichael Building and 21c Durham will continue to thrive in the years ahead.
Carmichael Building: Catalyzing growth from Tobacco Road’s legacy
The Carmichael Building is a state-of-the-art research facility in downtown Durham, North Carolina, that received a $7 million allocation from CAHEC New Markets in September 2013. Built in 1926 as a Liggett & Myers tobacco warehouse, the 114,600 square foot building was occupied with low-quality office space for Durham County Social Services prior to redevelopment into first-class research laboratories and offices for the Duke University Molecular Physiology Institute and Sarah W. Stedman Nutrition and Metabolism Center. This adaptive reuse project, completed in 2014, represented Duke University’s first major commitment to move research labs off-campus to downtown Durham, acting as a catalyst for a mixed-use development dubbed the Durham Innovation District.
The Durham Innovation District, also known as Durham.ID, was conceptualized by Longfellow Real Estate Partners, LLC, as a vibrant community destination offering 1.7 million square feet of Class A laboratory, office and retail space and 300 residential units. The completion of two new laboratory and office buildings in 2018 represented the first ground-up development in the Durham.ID. Notable tenants include Duke Clinical Research Institute, Google, Kimley-Horn & Associates, Cherry Baekart, and Spreedly.
The Carmichael building achieved a Leadership in Energy & Environmental Design (LEED) Silver certification and many local and national real estate and construction awards. As an economic catalyst, the Carmichael Building created 880 construction jobs, 205 permanent jobs, and returned the building to the tax roll generating significant additional property tax revenue for the city and county. To learn more about the Carmichael Building click here and the Durham.ID click here.
21c Museum Hotel: Contemporary art revitalizes vacant Art Deco icon
The 21c Museum Hotel (“21c Durham”), located in downtown Durham, North Carolina, is the innovative blending of a hotel with a public contemporary art museum. Funded in part by CAHEC New Markets with $9.25 million of New Markets Tax Credit allocation, 21c Durham is the adaptive reuse of the 17-story Hill Building, an Art Deco steel-framed office tower constructed in 1937 into a 125-room hotel and curated, public contemporary art museum. Known locally as the CCB Building and later SunTrust Building, the Hill Building was largely vacant beginning in 2006 due to obsolete floor plates and aging infrastructure. Several attempts were made by a local developer to convert the building into a hotel, but plans were stymied by the recession in the late 2000s. 21c Museum Hotels, a Louisville, KY-based hospitality company with a mission to make contemporary art a part of people’s daily lives and create drivers of economic growth and redevelopment, took on the project and began construction in mid-2013 bringing new life and cultural opportunities to downtown Durham.
At the time of the financial closing, downtown Durham was lacking in quality, modern hotels with the convention center estimating a need for 700 additional rooms. 21c was an early mover in the market and, shortly thereafter, additional hotels opened supporting the demand and reflecting Durham’s economic growth. The hotel chain rotates exhibits from national, international, and local artists and offers free year-round admission to the galleries and public areas. 21c Durham, which opened in 2015, has supported the local community by creating 230 construction jobs and 140 permanent jobs including the impactful act of partnering with local workforce development and nonprofit organizations to hire staff that experience barriers to employment. To learn more about 21c Durham click here.
In accordance with federal law and U.S. Department of the Treasury policy, this institution is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to Department of the Treasury, Office of Civil Rights and Diversity, 1500 Pennsylvania Ave. NW, Washington, D.C. 20220 or call (202) 622-1160.