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Crescent Growth Capital, LLC

Crescent Growth Capital, LLC

Structuring project financing to incorporate tax credit equity.

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CitySquare

June 28, 2013 by

In 1988, Dallas businessman Jim Sowell was moved by his concern for the problems associated with homelessness and poverty. He took action in response to the human suffering he observed by working with friends to launch the Central Dallas Food Pantry in a strip shopping center at Henderson and Central Expressway.

In 1990, the organization received status as a 501 (c) 3 non-profit corporation and, due to its growth, relocated to larger quarters at 801 N. Peak in East Dallas. In August 1994, current President and CEO, Larry James, joined the organization. Shortly afterwards, Central Dallas Food Pantry began doing business as Central Dallas Ministries and the organization acquired an additional building at 409 N. Haskell, the current location of its food pantry.

On Monday, October 25, 2010 Central Dallas Ministries officially launched under the new name CitySquare.  CitySquare offers a variety of poverty-fighting programs throughout Dallas as well as in Houston, San Antonio and Austin, based on four core values: Community, Faith, Justice and Stewardship.

In February, 2012, CitySquare partnered with Crescent Growth Capital (“CGC”) to develop a financing package for a comprehensive “Opportunity Center” at the Southeast corner of I-30 and Malcolm X Blvd.  The Opportunity Center, a joint effort between CitySquare, PepsiCo, Inc., and Workforce Solutions of Greater Dallas, is a $14MM multi-service 52,000 square foot facility.  It will provide a food distribution center, a new state of the art wellness center, a comprehensive employment training center that will house new offices for Work Force Solutions of Greater Dallas and CitySquare’s WorkPaths employment training division, CitySquare’s AmeriCorps headquarters/offices, and staging areas for CitySquare’s growing Summer and After-School Feeding Program funded by the Texas Department of Agriculture.

In addition, the Center will place key services and economic opportunities in one central location. Currently, our Resource Center/Food Pantry, wellness activities and WorkPaths employment program are located in three separate facilities. Centralizing these key services will create greater economies of scale in staff and resources, and allow us to serve more of our neighbors. Moreover, the Center will leverage our existing partnerships to promote greater stability in the workforce, the programs at the Center, and the overall community.

In June, 2013, CGC helped CitySquare and its partners close and fund a $12.5MM Federal Qualified Equity Investment, utilizing a $12.5MM allocation of Federal New Markets Tax Credits, provided by the Dallas Development Fund, and leveraging $4.1MM of NMTC equity provided by AT&T Corp.

Lighthouse for the Blind – Multi-Purpose Facility

August 10, 2012 by

Lighthouse for the Blind has been helping low-vision citizens of San Antonio find productive and purposeful vocations since 1933. Every year over 5,000 blind individuals receive assistance from San Antonio Lighthouse, and 250 blind individuals are directly employed in Lighthouse’s manufacturing operation.

Crescent Growth Capital was retained by San Antonio Lighthouse to structure and close a $12.7 million NMTC financing to help fund a new multi-purpose facility. The 60,000 square-foot Southside facility will allow for a significant expansion of Lighthouse’s rehabilitation services and manufacturing operation. The new facility will aid the continued growth of Lighthouse operations, address current facility exhaustion, enable Lighthouse to provide rehabilitation services to an additional 2,000 individuals annually, allow for the creation of 100 additional manufacturing jobs by 2016 – the majority of which will be filled by people who are blind – provide a boost to the local Southside San Antonio economy and position Lighthouse to be financially independent and self-sustaining.

Haven for Hope

January 11, 2010 by

The Haven for Hope project is a groundbreaking social service center in San Antonio, Texas. Haven for Hope seeks to revolutionize treatment for homelessness by centralizing every relevant social service within a cutting-edge, interdisciplinary campus.

For the homeless, barriers to entering mainstream society are numerous and vary from person to person. For those struggling with substance abuse or emotional disabilities, Haven offers mental health and drug treatment. Rather than further burdening overtaxed urban emergency rooms, the homeless are able to visit Haven’s medical clinic for preventative care, immunizations, dentistry, vision, and podiatry. Homeless families present unique demands for concerned caregivers; Haven’s campus features a childcare center, after-school programming, and family counseling. Employment training completes the picture.

Crescent Growth Capital enabled this pioneering facility by structuring a $40 million New Markets Tax Credit qualified equity investment for the new campus, sited within a highly-distressed census tract with a nearly 44% poverty rate and 14.5% unemployment.

Goodwill Regional Headquarters

January 12, 2009 by

Goodwill Industries has historically served people struggling with disabilities, economic disadvantages, and other barriers to employment, helping its clients achieve independence and self-sufficiency through employment support services.

In the wake of Hurricane Katrina, Goodwill’s Southeast Louisiana affiliate was besieged with a surge of applicants, though its regional headquarters had sustained catastrophic damage and had to be shuttered. Goodwill decided to site its replacement headquarters facility on the Tulane Avenue corridor of New Orleans, a neighborhood suffering from longstanding disinvestment. A crushing poverty rate of over 45% combined with pervasive unemployment – more than 16% as of the 2000 census – to create a decidedly troubled environment. Nonetheless, the avenue still functioned as a major artery in New Orleans and boasted frequent city and regional bus service, a major benefit to Goodwill’s clients. However, the new headquarters facility, encompassing office space, classrooms and a retail store, was facing a $4 million shortfall.

Crescent Growth Capital structured a $15 million New Markets Tax Credit qualified equity investment combining Goodwill’s resources with the NMTC allocations of two unaffiliated community development entities, an equity investment from a bank, and a leveraged loan from the same bank to generate a tax credit subsidy that realized Goodwill’s vision.

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NEW ORLEANS OFFICE
201 St. Charles Avenue
Suite 4205
New Orleans, LA 70170
504.378.3470

DALLAS OFFICE
13355 Noel Road
Suite 1100
Dallas, TX 75240
214.746.5065

KNOXVILLE OFFICE
1400 Kenesaw Avenue
Unit 11R
Knoxville, TN 37919
504.495.4060

SAN ANTONIO OFFICE
100 W. El Prado Drive
Unit 301
San Antonio, TX 78212
210.355.3313

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