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Crescent Growth Capital, LLC

Crescent Growth Capital, LLC

Structuring project financing to incorporate tax credit equity.

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Second Harvest of the Big Bend

April 3, 2024 by

Second Harvest of the Big Bend was founded in 1982 and first focused on collecting and distributing perishable food. An affiliate of the nationwide Feeding America food bank network. Second Harvest’s service area consists of an expansive, sixteen-county region in the central Florida Panhandle. Last year, SHBB distributed a record 13.8 million pounds of food donated by national manufacturers, food wholesalers and distributors, other regional food banks, local food retailers, regional farmers, local food drives and individual donors. SHBB also routinely purchases some foods at a wholesale rate and distributes U.S. Department of Agriculture (USDA) Commodities through The Emergency Food Assistance Program (TEFAP). In 2022 SHBB served over 120,000 individuals, 59.4% of whom were members of ethnic or racial minorities.

SHBB has developed several programs tailored to its clients, many of whom live in remote rural areas (51.5% of all clients). Twelve mobile pantries, known as “Just in Time” distribution vehicles, are often located in church or nonprofit parking lots in a farmers’ market-style distribution, while the Senior Grocery Program provides low-income seniors with supplemental nutrition at the end of the month, when seniors’ financial resources are often depleted. (Over a quarter of those SHBB serves are seniors.)

Despite last year’s record level of food distribution, the end of pandemic-era assistance programs has triggered an explosion in demand, and SHBB estimates that a near-doubling of its annual capacity, to 25 million pounds, is required to adequately serve those struggling with food insecurity.

In March of 2024, in partnership with Hampton Roads Ventures, CCG Community Partners, and Truist Bank, Crescent closed on a $13.0M Federal NMTC financing to upgrade and expand its existing facilities, technology, programs and staff. An $11 million facility expansion will fund:

  • Volunteer Hub – a dedicated food-loading workspace to separate volunteers from forklift operators and improve safety;
  • Community Training Center – a space for training food safety and nutrition education specialists;
  • Community Wellness and Education Center – a demonstration kitchen to educate food-insecure persons in gardening, nutrition, food preparation and cooking – resulting in self-sufficiency and better nutrition;
  • Agricultural Education Center – a new, outdoor education area for demonstrations and workshops, to include a greenhouse, room for additional gardens, raised beds and row crops, plus a composter to generate soil and reduce landfill waste.

Eight new full-time staffers will be leveraged to supervise the planned aggressive expansion in output, new equipment will ease the difficulties SHBB encounters in serving its rural clients, and new technology will support both better internal performance and improve cooperation with the 135 nonprofit partners SHBB collaborates with to serve its highly-disadvantaged, “majority-minority”, mostly rural client base within its sixteen-county service area. SHBB’s significantly improved capability in its designated role as the North Florida Disaster Hub will also greatly benefit its clientele, whose poverty renders them especially vulnerable to climate change-induced extreme weather events.

Circle Seafoods

December 31, 2023 by

Circle Seafoods (“Circle”) is revitalizing Alaska’s wild salmon industry – one of the most healthy, sustainable natural resources in the world – by simplifying and streamlining the cold chain.  Consumers want premium wild salmon year-round at farmed salmon quality and consistency but can’t get it due to a cold chain that hasn’t changed since the early1900s. Wild salmon today is low quality, inconsistent, and only available a few months per year.  Circle is solving this by building and operating mobile, cost-effective, ultra-low temperature fish freezing and cold storage facilities on the water. This results in higher-quality wild salmon produced at a lower cost (-65%), a lower carbon footprint (-50%) and wild salmon supply that is available year-round.

In December of 2023, in partnership with Hampton Roads Ventures, Alaska Growth Capital, CEI Capital Management, and US Bank, Crescent closed on a $23.0M Federal NMTC financing to construct a cold storage facility and a salmon processing facility on top of a barge.  Wild salmon will be purchased and frozen on the barge in Bristol Bay, Alaska and SE Alaska from June to September.  The salmon will then be processed on the barge from September to June in Aberdeen, Washington.

Circle’s model can bring substantial benefit to Alaskan communities by providing year-round processing jobs. The state has supported significant investments in processing throughout Bristol Bay and along Alaska’s west coast. Outside of the salmon fishing season, land-based plants are either shuttered or underutilized because of lack of access to salmon. Circle’s ability to preserve fish quickly during the season and then provide access to supply year-round maximizes these existing investments and offers compelling year-round employment opportunities for the members of these communities.

The mobile infrastructure and business model create additional revenue for Alaskans and their communities through four primary channels:

  • Increased income for all fishers, tied to quality,
  • Increased year-round employment opportunities in economically distressed and rural communities in Alaska,
  • Increased tax revenue
  • Direct fisher education on quality and thus income enhancing practices.

Assuming 20% of Circle’s total supply stays in Alaska for processing, Circle will generate 120 full-time jobs in 2024, 400 full-time jobs in 2025, 840 full-time jobs in 2026, and 1,120 full-time jobs in 2027. Circle estimates that 134 direct jobs and 113 indirect and induced jobs will be created in Aberdeen, WA as a result of the project. Fishers will receive a pay increase, and the project will especially benefit the historically-disadvantaged native populations.

Circle will work with local institutions to train its labor force and in doing so, enable low skilled workers to access higher wage employment opportunities, whether with Circle or elsewhere in the community. Circle will partner with Grays Harbor Technical and to implement and support programs that prepare enrollees to fill high wage and technical jobs (e.g. fabrication, accounting, welding & construction).

Community Food Bank of Eastern Oklahoma

February 15, 2022 by

CFBEO is Feeding America’s designated food bank for the twenty-four county region of eastern Oklahoma centered around Tulsa. In 2019, the food bank distributed a record 28.9 million pounds of food.

In 1981, in response to the rising number of people struggling with hunger, Tulsa’s Neighbor for Neighbor feeding program evolved to become the Tulsa Community Food Bank. Operating from a small, donated warehouse space, in year one the food bank provided food assistance to 25 partner agencies and distributed 90,000 pounds of food, the equivalent of 75,000 meals.

In 2006, the Food Bank opened its current facility, the Donald W. Reynolds Food Distribution Center. That year the Food Bank distributed 7.5 million pounds of food, a record at the time.

Since its founding, the food bank has also steadily grown its service area and has continued to expand the scope of its services. Programs include on-site feeding programs, emergency shelters, emergency food pantries, children and senior feeding programs, veterans’ outreach initiatives, disaster relief and other low-income programs that have a meal component. All of these programs provide food free of charge to people who struggle with hunger in the community.

The food bank’s work also includes direct feeding programs such as Cooking Matters, Food for Kids, and Senior Servings, as well as clinic pantries, mobile pantries, and culinary center and college campus pantries. Collectively the Community Food Bank of Eastern Oklahoma coordinates more than 380 direct feeding sites.

In 2019, the food bank distributed a record 28.9 million pounds of food, the equivalent of more than 24 million meals, to the hungry. The food bank distributes food via both direct programs and through 350 partner agencies, located in the 24 counties of eastern Oklahoma that comprise nearly 30,000 square miles and contain a population of more than 1.5 million people.

Despite these ongoing successes, CFBEO’s distribution center has been bursting at the seams for years. At 78,000 square feet, the facility was designed to have the capacity to distribute 20 million pounds of food annually.

In February of 2022, in partnership with Hampton Roads Ventures, Heartland Renaissance Fund and Capital One, Crescent closed on a $16M NMTC financing to construct the new Community Food Bank of Eastern Oklahoma.

CFBEO will add 66,000 SF to CFBEO’s existing 78,000 SF facility, increasing its design capacity from 20 million pounds of food distributed annually to nearly 52 million pounds of food distributed annually. Even though improved workflows will greatly boost the productivity of CFBEO’s existing workforce, additional hiring will be needed, resulting in nine permanent new positions. Approximately 250 construction jobs will also be generated by the facility expansion component of the Build Hope campaign. A new 12,500 SF food preparation kitchen will enable the growth in prepared meal distribution, and fresher, more nutritious offerings will be made available.

North Texas Food Bank

September 6, 2017 by

Established in 1982 by Jo Curtis, Ambassador Kathryn Hall, Lorraine Griffin Kircher and Liz Minyard, the North Texas Food Bank (“NTFB”) addresses the critical issue of hunger by providing food-insecure North Texans with edible surplus food and grocery items otherwise destined for landfills.

Today, NTFB leads the fight against hunger by distributing donated, purchased and prepared food to 439,000 unduplicated individuals annually through a network of more than 200 Partner Agencies and 1,000 feeding sites in 13 North Texas counties, including: Collin, Dallas, Delta, Denton, Ellis, Fannin, Grayson, Hopkins, Hunt, Kaufman, Lamar, Navarro and Rockwall.  61% of NTFB clients are minority, 82% of client households earn less than $20,000 annually and a staggering 83.4% of NTFB clients are food insecure – meaning they would otherwise have no alternative source of food.  Furthermore, food insecurity affects the elderly to a disproportionate degree, given their fixed incomes and higher medical costs, in fact, every month 31.5% of NTFB clients must make a choice between food and medical care. Established in 1982 by Jo Curtis, Ambassador Kathryn Hall, Lorraine Griffin Kircher and Liz Minyard, the North Texas Food Bank addresses the critical issue of hunger by providing food-insecure North Texans with edible surplus food and grocery items otherwise destined for landfills.

Hunger continues to be a growing problem across the United States, and North Texas is no different.  Based on Feeding America’s Map the Meal Gap 2014 report, the estimated current annual need in North Texas is approximately 92 million nutritious meals.  Since recently completing a three-year strategic plan, ReThink Hunger, NTFB is operating at maximum capacity with its current facilities and unable to meet the remaining need for an additional 30 million nutritious meals annually.

According to Feeding America, one in six people in NTFB’s 13-county service area (856,060 total) is at risk for hunger and hunger-related health issues, and the number of food-insecure individuals continues to rise.  The populations most affected are families living below the poverty line, the working poor, seniors on a fixed income, adults with disabilities and children.

As part of its $55 million Stop Hunger Build Hope Capital Campaign, NTFB developed a plan for a new Northern Distribution Center in Collin County.  The proposed 200,000 square foot facility is expected to house 60,000 square feet of dry warehouse space, 70,000 square feet of refrigerated warehouse space, 12,000 square feet of office space, seven refrigerated docks, 11 dry docks, a Community Garden, and a 28,000 square foot volunteer center with the capacity to accommodate up to 400 volunteers per day.

In September, 2017, Crescent Growth Capital facilitated a $24M NMTC financing to help fund the $27.4M construction cost of the new Northern Distribution Center, using allocation provided by Texas Mezzanine Fund and Pacesetter, with a NMTC investment provided by US Bank.  The approximately $4.4M in net NMTC subsidy directly reduced the amount of capital campaign funds required to complete this particular project, as well as affording the non-profit some flexibility for the other Stop Hunger Build Hope Capital Campaign projects.

West Texas Food Bank

July 20, 2016 by

For more than 20 years, the West Texas Food Bank (“WTFB”) has been West Texas’ only provider of reliable, affordable food.  The Food Bank serves the needy in two ways; first, they provide meals to more than 44,000 clients annually in their 19-county footprint.  Secondly, they provide food to a network more than 80 non-profits, leveraging the wider reach of those partners.  WTFB continues to purchase greater amounts of food, because greater efficiency in food manufacturing is reducing surpluses that used to be donated to food banks, and also because of increased demand, particularly in the Permian Basin area.

The inflationary effect on rents as a result of the oil boom has driven many people, especially the longtime resident elderly, to seek food from WTFB and its partners.  Elderly residents living on fixed incomes cannot easily survive as food prices rise.  The Food Bank, with its affiliation with Feeding America, is able to negotiate cheaper prices on food, passing this savings along to its partners and expanding the reliable supply of free food to the neediest of West Texas residents.

For more than a decade, the WTFB has recognized that the demand for its services far outstrips its ability to cope with that demand, that a new, larger facility would be required to meet growing needs.  Census data reports that since 2000, the combined population of Midland and Ector counties has risen by more than 40,000 people, and the number of individuals served by the WTFB has grown in lock-step with the population increase over that time.  The existing facilities are out-of-date, over-used, and under-prepared to serve hungry West Texans.

Despite being hamstrung by inadequate facilities, WTFB’s impact on the community has nevertheless been staggering.  In 2014, WTFB distributed over 5 million pounds of food, or 4.2 million meal equivalent, to people in need: 40% of whom are children, 16% are seniors, and 63% are Latino.  Seventy-four percent of WTFB clients have incomes that fall at or below the federal poverty level, with 89% of client households having annual incomes of $20,000 or less.

17 of the 19 counties WTFB serves are rural, and most of their service area is a USDA Food Desert.  Over 98% of the 418 US counties that are designated Food Deserts are rural, and are some of the poorest in the US.  Rural food deserts not only face higher poverty rates, lower median incomes, and significantly older populations than other rural counties, but they also suffer from severely limited access to quality, affordable food options, resulting in an extremely unhealthy and impoverished community.  Studies conducted in rural food deserts show that more than 45% of the population did not consume adequate amounts of fresh fruits, 67% did not eat enough vegetables, and 34% lacked adequate dairy in their diets[1].  These populations must turn to smaller grocery stores that have a limited variety of quality foods and tend to charge higher prices[2].

In July, 2016, WTFB and Crescent Growth Capital closed on a $6MM NMTC financing, utilizing $5MM in allocation from McCormack Baron Salazar and $1MM from US Bank, to finance to construct a new 11,150 square foot volunteer activity and program innovation center.  The nearly $6MM distribution center will feature 11,150 square feet of interior space and 7,000 feet in outdoor learning space, serving as the primary volunteer activity and program innovation center for the WTFB.  The facility will add storage capacity as well, but more importantly, it will provide space to interact with the community, for classes covering topics ranging from basic nutrition and wellness to growing fruit and vegetables at home.

Volunteers, such an integral part of the food bank’s operations, will finally have adequate space to meet and work, operating a wide variety of programs at a very efficient cost.  The WTFB simply could not provide all it does for the community, were it not for its army of volunteers donating their spare time to help their hungry neighbors.  A new facility will greatly improve volunteers’ effect on the surrounding community.  The $6MM Midland project includes the following amenities:

  • Demonstration Kitchen – A fully outfitted home-style kitchen used to demonstrate appropriate cooking techniques to community members such as youth groups, SNAP recipients, people with health issues that bring with them with dietary restrictions, and many more groups who will receive instruction from food experts.
  • Client Choice Pantry – Modeled after a convenience store, this room will have refrigeration and shelving that allows clients who need food to come in and select what foods they want. The Client Choice Pantry is available to first-time users; thereafter, clients are referred to one of the WTFB partners for ongoing service.
  • Large Warehouse Area – The warehouse area is used for storing foods, and includes a freezer/refrigerator section of significant size, and will serve as a staging area, utilized by the many volunteers who serve as unpaid labor for the food bank.
  • Community & Training Room – This room will be available for use by the community for meetings and conferences. It will be fully outfitted with audio-visual equipment to facilitate presentations so that appropriate learning can take place.
  • Hunger Alleviating Trail – An outdoor learning space, the Trail will be planted with native plants that are edible, and other plants that can thrive in Texas’ arid climate. It will serve as a meeting place for youth groups and others to learn how to grow desert gardens.
  • Earth-Bermed & Conventional Green Houses – An underground greenhouse will receive daylight but will be maintained at a cooler temperature to allow for a wider variety of plant life to blossom. An above-ground green house to grow winter vegetables during the cooler months.

[1] “Starved for Access: Life in Rural America’s Food Deserts”

[2] P.M Morris, L. Neuhauser, and C. Campbell, “Food Security in Rural America: A Study of the Availability and Costs of Food.” Journal of Nutrition Education 24: 52S-8S; (1992)

 

Cloverleaf Cold Storage

April 12, 2015 by

Founded in 1952, Cloverleaf Cold Storage is a family-owned provider of public and contract storage for the meat processing and packaging industries. With 15 refrigerated warehouses and nearly 65 million cubic feet of food storage space nationwide, Cloverleaf is consistently ranked by the International Association of Refrigerated Warehouses as one of the 25 largest operators in the world.

In early 2015, Cloverleaf kicked off plans to open a 235,000 sq. ft. facility that would provide refrigerated warehouse space and added distribution capacity to the adjacent Farmland processing plant, and engaged Crescent Growth Capital to help them solicit, structure and close a NMTC funding to finance the $30MM facility.  In April, 2015, CGC and Cloverleaf closed a stacked NMTC financing utilizing $10MM of Illinois State NMTCs and $14MM of Federal NMTCs provided by Enterprise Bank & Trust, Capital Impact Fund and JP Morgan Chase provided.

The new facility, Cloverleaf’s first in Illinois,is expected to create up to 150 new jobs and will allow for further expansion at the Farmland plant increasing food distribution capacity in a USDA-designated Food Desert.  The NMTC loans not only provide Cloverleaf with low-cost financing, but has the potential to accelerate Cloverleaf’s long-term expansion plans, which would create up to 50 additional jobs at the Monmouth facility.

 

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