Key Takeaways
- • Pathway Lending and the Memphis Medical District Collaborative (MMDC) launched the $30 million Memphis Medical District Investment Fund to finance residential and mixed-use real estate development in the Memphis Medical District.
- • The fund is capitalized with $10 million each from First Horizon, Regions Bank and Truist Bank, a guarantee of up to $6 million from The Kresge Foundation, and additional operating support from The Hyde Family Foundation.
- • Market studies indicate the district can absorb 1,000 more residential units and nearly 170,000 square feet of commercial and retail space.
- • Pathway Lending, a regional Community Development Financial Institution (CDFI), will underwrite and deploy the fund's capital.
- • Kresge describes the structure as a model for inclusive development, expecting 15 to 20 years of mission-oriented development to occur over the next five to seven years, according to Aaron Seybert.
Summary
Pathway Lending and the Memphis Medical District Collaborative (MMDC), in partnership with First Horizon, Regions Bank, Truist, The Kresge Foundation and The Hyde Family Foundation, announced the launch of the Memphis Medical District Investment Fund, a $30 million capital fund dedicated to supporting residential and mixed-use development in the Memphis Medical District. The announcement was made July 19, 2021.
Pathway Lending, a regional CDFI, will underwrite supported projects and deploy the fund. The fund is capitalized with $10 million contributions each from First Horizon, Regions Bank and Truist Bank, a guarantee of up to $6 million from Kresge, and additional operating support from The Hyde Foundation. Regions Community Development Corporation, a wholly owned subsidiary of Regions Bank, will facilitate Regions' $10 million contribution. Pathway President and CEO Clint Gwin said the fund would bring catalytic capital to the district to facilitate redevelopment and new development.
The Medical District hosts several large hospital systems and medical education providers, with more than 30,000 employees and students and over 10,000 residents. According to the announcement, decades of disinvestment have produced high poverty rates and a shortage of adequate housing and commercial options. Although the area has seen marked investment recently, market studies indicate it can absorb 1,000 more residential units and nearly 170,000 square feet of commercial and retail space. Rory Thomas, president of MMDC, said the fund would help developers access capital and sustain momentum in the district.
The fund deepens Kresge's investment in Memphis and its partnership with MMDC, and was shaped by Kresge's American Cities Program and Social Investment Practice. Aaron Seybert, managing director of Kresge's Social Investment Practice, cited Kresge's experience in Detroit, noting that accelerated inclusive development builds on itself. The Hyde Family Foundation, which has been a major MMDC stakeholder since helping drive its formation in 2016, said through president Teresa Sloyan that it is excited to support the effort. Bryan Jordan, President and CEO of First Horizon, and Johnny Moore, Tennessee region president for Truist, described the partnership as a model for community development and a means of attracting significant investment. David May, market executive for Regions Bank in Memphis, said the initiative reflects two years of planning.
Pathway Lending, a regional CDFI, will underwrite supported projects and deploy the fund. The fund is capitalized with $10 million contributions each from First Horizon, Regions Bank and Truist Bank, a guarantee of up to $6 million from Kresge, and additional operating support from The Hyde Foundation. Regions Community Development Corporation, a wholly owned subsidiary of Regions Bank, will facilitate Regions' $10 million contribution. Pathway President and CEO Clint Gwin said the fund would bring catalytic capital to the district to facilitate redevelopment and new development.
The Medical District hosts several large hospital systems and medical education providers, with more than 30,000 employees and students and over 10,000 residents. According to the announcement, decades of disinvestment have produced high poverty rates and a shortage of adequate housing and commercial options. Although the area has seen marked investment recently, market studies indicate it can absorb 1,000 more residential units and nearly 170,000 square feet of commercial and retail space. Rory Thomas, president of MMDC, said the fund would help developers access capital and sustain momentum in the district.
The fund deepens Kresge's investment in Memphis and its partnership with MMDC, and was shaped by Kresge's American Cities Program and Social Investment Practice. Aaron Seybert, managing director of Kresge's Social Investment Practice, cited Kresge's experience in Detroit, noting that accelerated inclusive development builds on itself. The Hyde Family Foundation, which has been a major MMDC stakeholder since helping drive its formation in 2016, said through president Teresa Sloyan that it is excited to support the effort. Bryan Jordan, President and CEO of First Horizon, and Johnny Moore, Tennessee region president for Truist, described the partnership as a model for community development and a means of attracting significant investment. David May, market executive for Regions Bank in Memphis, said the initiative reflects two years of planning.
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