Memphis Medical District, Pathway Lending, Banks and Private Foundations Partnership to Launch Capital Fund to Fund Transformative Residential and Mixed-Use Real Estate Development
MEMPHIS – 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 today announced the launch of the $ 30 million Memphis Medical District investment fund. a fund designed to support the development of residential and mixed-use projects in the Memphis Medical District.
Pathway Lending, a Regional Community Development Financial Institute (CDFI), will guarantee project support and deploy a fund that it has capitalized with $ 10 million in contributions from First Horizon, Regions Bank and Truist Bank, as well as up to $ 6 million in guarantees from Kresge and additional operational support from The Hyde Foundation.
“Pathway Lending has been committed to working with our banking partners and community stakeholders for over 20 years to raise capital in underserved communities. Improving neighborhoods and empowering the people and businesses that they own are central to our work, ”said Clint Gwynne, President and CEO of Pathway. “The creation of the Memphis Medical District Investment Fund will bring incentive capital to the Medical District to facilitate renovation and new development, contributing to the area’s growth and long-term sustainability. We are proud of the community and our partners have entrusted us with this capital to realize the vision of a prosperous community that all citizens can share. ”
Memphis Medical District is home to several large hospital systems as well as a number of medical education institutions. The area is home to over 30,000 employees and students and over 10,000 residents. However, decades of declining investment in neighborhoods have resulted in high levels of poverty and a lack of suitable housing and commercial opportunities. Although there has been significant investment in the area in recent years, market research indicates that the district could absorb an additional 1,000 residential units and nearly 170,000 square feet of commercial and retail space. The fund will provide developers seeking to fill existing deficits with an additional source of capital in the form of flexible financing in a growing market.
“People are increasingly seeing the value of the Medical District as a place to invest, opportunity and become part of a growing community,” said Rory Thomas, president of MMDC. “Memphis Medical District Investment Fund is an important tool to help developers access capital and continue to grow the Medical District.”
Memphis Medical District Investment Fund expands the capabilities of the Kresge Foundation. investment in Memphis and its partnership with Memphis Medical District Collaborative… Through him American cities program as well as Social investment practiceboth of which helped form the foundation, Kresge is committed to promoting inclusive and effective social and economic development.
“From our experience in Detroit, we know that if you accelerate inclusive development in the area, it builds on itself,” said Aaron Seibert, managing director of Kresge’s Social Investment Practice. “Through this collaboration and this unique financial structure, we think that in the next five to seven years we can see 15 or 20 years of this kind of missionary development.”
The Hyde Foundation’s contribution to the new foundation continues to provide ongoing support to MMDC, where the foundation has remained a major stakeholder since its inception in 2016.
“The Medical District has always been the focus of the Hyde Family Foundation, and we are incredibly pleased to support this effort,” said Theresa Sloyan, President of the Hyde Family Foundation. “Our partners in this initiative are agents of change, and we are proud to support and support their work, which will significantly accelerate residential and commercial development to meet the need for a dynamic and inclusive community.”
“These strategic partnerships and investments serve as a model for community development throughout our community, especially in the medical district,” said Brian Jordan, President and CEO of First Horizon. “This fund will provide vital capital to help members of our communities have greater access to funding.”
The Regions Community Development Corporation, wholly owned by the Bank of Regions, will contribute US $ 10 million.
“The Medical District is a vital part of Memphis and the Mid-South, and this collaboration is designed to leverage the resources of local partners to have a very meaningful impact,” said David May, market leader at Regions Bank in Memphis. “This area is a unique blend of world-class healthcare facilities, leading educational institutions, and residents and neighbors looking to cheer up the community. Today’s announcement reflects the culmination of two years of planning to support the area’s ongoing transformation and further develop its immense potential. The regions are proud to invest heavily in the future of the district. “
“At Truist, our goal is to inspire and improve lives and communities, and our partnership with Pathway Lending to accelerate the renaissance of Memphis Medical District exemplifies our goal,” said Johnny Moore, president of Truist Tennessee. “We have a real opportunity to create the momentum needed to attract the significant investment needed to return the Memphis Medical District to a vibrant business and residential area, and I am grateful that we are part of that effort.”