New Markets Tax Credits Advisory Services and Investment

The US Department of Treasury has named Lowe Economic Development Company, a Lowe Enterprises affiliate, as a Community Development Entity (CDE), which can invest New Markets Tax Credits (NMTC) to generate investment capital to be used to provide flexible, low-cost financing products to qualified projects throughout specific service areas in the West and Mid-Atlantic regions of the US. Equity generated from the sale of NMTCs can fill the financing gap on eligible projects, and can often cover approximately 25 percent of a project's total development costs.

Lowe invests all of its allocation in real estate development projects that will drive and support job creation in in low-income, highly-distressed communities. Lowe also prioritizes those projects that generate maximum community and economic benefits (i.e. high-quality jobs, sustainable building and operations, community services, sales taxes, business license taxes, property tax increment). Lowe has the flexibility to invest in a wide range of project types, including retail, office, industrial, mixed-use, community facilities and health care facilities.

The criteria for investment are site-specific and determined by census block group. Eligible projects must be located in a census tract characterized as economically distressed. Eligible census tracts must meet at least one of the following characteristics:

Poverty rate greater than 30 percent;
Median income less than 60 percent of area median income; or,
Unemployment rate at least 1.5 times the national average.

Alternatively, the project can be located in a census tract that meets at least two economic distress designations, including but not limited to: HOPE VI Redevelopment Area, Tax Increment Financing District, Federal or State Empowerment Zone, Federal Enterprise Community, Federal Brownfields, or Redevelopment Area. Lowe has been approved to invest in California, and additional markets in the West Coast and Mid-Atlantic regions.

New Markets Tax Credits Advisory Services

Over the past three years, Lowe has also provided NMTC Advisory Services to higher education, healthcare, and public entities that are seeking NMTC funds. Building on its vast real estate expertise, Lowe may also provide construction management, project management and asset management services to NMTC investors or advisory projects, on an as needed basis.

To Learn More About How Lowe May Facilitate Your Development Projects, please contact:

Albert Lemus

Liliana Aide Monge

Recent Advisory Transactions Include:   Recent Investment Transactions Include:

Port Renovation, Inc – Port of Hueneme – Oxnard Harbor District, Port of Hueneme, CA

Lowe secured $14.7 million in NMTC funds to help finance the $21.5 million needed to substantially rehabilitate a nine- acre transportation facility, and the ground-up construction of a wharf electrification system that will provide shore-side power for fresh-fruit cargo vessels. The project is located in Port Hueneme, also known as the “Port the Farmer’s built” in Ventura County. Port Renovation, Inc is a nonprofit, public benefit corporation that is charged with improving port infrastructure and increasing the supply of fresh produce to the region via collaborations with local food banks in Ventura County. The project will result in a reduction of diesel vessel emissions from 263 tons per year to 53 tons per year and PM emissions from 43 tons per year to 9 tons per year.

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Desert Hot Springs Community Health and Wellness Center – City of Desert Hot Springs, CA

Lowe secured $21.3 million in NMTC funding to help finance the development of a 42,000-square-foot health and wellness facility in Desert Hot Springs that will serve at least 20,000 families on an annual basis. The Desert Hot Springs Foundation, a nonprofit, public benefit corporation, provides health and recreational programming to diverse populations throughout the country. The project was designed to provide upstream preventive and dental healthcare opportunities to a medically underserved population. Through this facility, members of the Desert Hot Springs community will have access to various recreational activities as well as health and nutritional education. The project will house a Teen Center, a Boys and Girls Club, a Gymnasium & Aquatic Center, a Community Health and Wellness Center, and a Community Center.

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Helms Community Center – San Pablo, CA<

Lowe secured $9 million in NMTC funding to help finance the Helms Community Center. The City of San Pablo entered into a lease agreement with the West Contra Costa Unified School District for a 20,000 square foot plot of land that sits between the Middle School and the track and sports fields. Through the partnership established with the School District and the desire not to duplicate services, the Helms Steering Community and the City worked to develop a building that will meet the needs of both the school population and the San Pablo community. The actual Community Center will be 10,500 square feet and will include a large multi-purpose space with WiFi and a kitchen (for catering or cooking classes), two smaller meeting/class rooms, a teen lounge with a music recording room, a computer room with 20 computers, and a fitness room.

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Anderson Munger Family YMCA - Los Angeles, CA

Lowe provided $14 million in NMTC to help finance the $28 million development of a 29,000-square-foot LEED Silver facility, in the Koreatown neighborhood of Los Angeles, CA. The newly constructed facility will serve approximately 2,400 families on an annual basis. The Anderson Munger Family YMCA is a nonprofit, public-benefit corporation dedicated to providing superior health and wellness programming for individuals, and families through a holistic approach. The proposed facilities will include an aquatic center, a running track, a youth and teen canteen, a child care center, and a basketball court. Innovative design and building techniques will allow for a park to be built atop the four-story parking structure.

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Liberty Station - San Diego, CA

Lowe provided $12 million in NMTC to help fund phase two of the Liberty Station redevelopment of the former Naval Training Center in Point Loma into the NTC Promenade, a cultural and arts center that is part of the larger master planned base redevelopment undertaken by the San Diego Redevelopment Agency. Phase two of the NTC Promenade is a $20 million renovation of seven buildings totaling 75,000 square feet. The expansion will provide office and community space for cultural and arts education programs. The NTC Promenade is run by the non-profit NTC Foundation and serves an area designated as a Renewal Community.

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Sharp Medical Office - San Diego, CA<

Lowe provided $13 million in NMTC to help fund the $40 million development of a 68,350-square-foot, three-story medical office and primary care facility. Located in the Bankers Hill neighborhood near downtown San Diego, the Sharp facility is designed to meet LEED Gold standards; it is the first facility in the area to seek this high standard for green/sustainable development. Sharp HealthCare, a non-profit, public benefit corporation that provides a regional integrated health care system in the San Diego area, will develop and own the center. Sharp will offer medical services including primary, specialty and urgent care to this low-income community.

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Oregon College of Oriental Medicine - Portland, OR<

Lowe provided $6,750,000 in NMTC to support the Portland Development Commission's $14.5 million renovation of the former Globe Hotel into a new home for the Oregon College of Oriental Medicine. The new facility, in the Old Town/Chinatown district, allows the College to expand its affordable health care to a larger and underserved population. The Oregon College of Oriental Medicine, which already serves more than 25,000 patients each year, now has a centralized location for its clinic operations and its educational and training facilities.

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