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John Shanley
Director of Commercial DevelopmentJanuary 31, 2008
N.C. Main Street 2008 Conference
How Self-Help Can Help Youwith Redevelopment
on Main Street, NC
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&ECONOMIC OPPORTUNITY
CREATING OWNERSHIP
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Who is Self-Help? Non-profit Community Development Financial Institution founded in
1980
Helps borrowers nationwide build wealth through ownership of ahome or business.
Finances nonprofits, childcare centers, community health facilities,public charter schools and residential and commercial real estateprojects.
$100 million in deposits and $1 billion in assets
$5 billion in financing to 55,000 families, small businesses, & non-profits
250 employees: North Carolina, DC, California
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Home Lending
$228 million
3,290 loans
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Secondary Market Financing
$4.3 billion 48,390 loans
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Small Business Lending
$302 million
2,648 loans
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Community Facilities Lending
$140 million 699 loans
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Policy & Advocacy
Opposing predatory lendingPredatory mortgages
Overdraft loans
Payday lending
Advocating for credit unions
Researching minority access to capital
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Residential Real Estate Development
84 homes built orremodeled and sold tolow- and moderate-income families
$9.9 million invested
Currently active in
Charlotte, Durham,Fuquay-Varina,Greensboro, & Goldsboro
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Downtown Goldsboro New Homes
12 new single-familyhomes planned for theSouth John/ William
Street Neighborhood 3 under construction
January 2008
Land acquired anddonated by City ofGoldsboro to Self-Help
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1184 square feet
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Commercial Real Estate Development
$62 million investedin downtowns
15 buildings (600Ksquare feet) ofaffordableoffice/commercialspace
9 cities across NorthCarolina & DC
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Locations
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AshevillePublic Service Building
Built in 1929 forCP&L
Art-deco style
Renovated 1992 Helped revitalize
Wall Street district
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CharlotteGreat Aunt Stella Center
Former church Sanctuary used for
weddings andreceptions
Home to Self-Helpbranch andmortgage
operations Renovated 2005
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GreenvilleProctor Hotel
Built 1911 Renovation
completed 2004
Tenants: EastCarolina University,Caf Europa, TwistSalon, Self-Help,Uptown Greenville
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FayettevilleMarket Square Business Center
WilsonMercy Hospital
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SanfordWicker Business Center
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Wicker Business Center Developed in partnership with Brick Capital CDC
Renovation complete in 2006
Home to Central Carolina Community College,Excel Tutoring, Business Incubator
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Rocky Mount
Former PeoplesBank building
Historic renovationcompleted 2006
Anchors:EdgecombeCommunity College
Golden LeafFoundation
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Peoples Building Before
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Peoples Building After
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Permanent Sources & Uses
$3,436,000Total
$574,000Developer fee
$406,000Soft costs
$2,424,000Hard costs
$32,000Purchase
$3,436,000Total
$225,000Deferred fee
$182,000Self-Help equity
$1,775,000Debt
(FHLBA EDGE)
$1,254,000HTC equity
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Self-Helps Tenantsby square feet (~400,000 in NC)
Non-profit
33%
Educational
Institution
7%Government
12%
Self-Help branches
21%
Businesses27%
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Self-Helps Tenantsby count (172)
Businesses, 81
Non-profit, 67
Educational
Institution, 3
Self-Help branches,
14
Government, 7
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MonroeBearskin Mill
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Rocky MountOld U.S. Post Office
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Commercial Real Estate Lending
Loan size from $180,000 to $40 million;
typical size $500,000 to $2 million $80 million across 12 projects in North Carolina
downtowns since 2003
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New Markets Tax Credit Loans
Loan to Value 70-80%
7 year term; no prepayment allowed
20-25 year amortization
Interest only periods
Fixed interest rates starts at 7-year Treasury + 230basis points (as of Jan 30, 5.45%)
Origination fee 1%
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$525,000 New Markets TaxCredit loan from Self-Help withparticipation from City
Loan closed December 2005 Former Penny Furniture Co
building, built in early 1900s.
Now residential on second floor,open floor-plan office space onfirst floor.
Penny BuildingDowntown Durham NC
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$1.5 million New Markets Tax Credit loan in Dec 2007 Project received Historic Tax Credits
Mixed-use revitalization of former hardware store
Now loft apartments, office and retail space
Standard Hardware BuildingDowntown Gastonia NC
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SBA 504 Loans Low Downpayment:
10% LTC (loan-to-cost)for most existingbusinesses
Great fixed interest rate:6.5-7.0% for most of2007
Long-Term Financing:20 years on real estate;10 years on equipment
Pembroke Hardware
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What we look for in loans
Relevant experience on development teamLead developer; contractor, architect
A business plan & market knowledge
A comprehensive project budget At least some space pre-leased
Equity available to put into the project
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Call Us toTalk About Your
Next Main Street Project
For development, contact John Shanley
919-956-4612 [email protected]
For a loan, contact Annie Scorza
919-956-4418 [email protected]
www.self-help.org
