How Self-Help Can Help You

with Redevelopment
on Main Street, NC

John Shanley
Director of Commercial Development
January 31, 2008
N.C. Main Street 2008 Conference
CREATING OWNERSHIP

&
ECONOMIC OPPORTUNITY
 Who is Self-Help?
ƒ Non-profit Community Development Financial Institution founded in
1980
ƒ Helps borrowers nationwide build wealth through ownership of a
home or business.
ƒ Finances nonprofits, childcare centers, community health facilities,
public charter schools and residential and commercial real estate
projects.
ƒ $100 million in deposits and $1 billion in assets
ƒ $5 billion in financing to 55,000 families, small businesses, & non-
profits
ƒ 250 employees: North Carolina, DC, California
 Home Lending

ƒ $228 million
ƒ 3,290 loans
Secondary Market Financing
ƒ $4.3 billion
ƒ 48,390 loans
Small Business Lending
ƒ $302 million
ƒ 2,648 loans
Community Facilities Lending
ƒ $140 million
ƒ 699 loans
 Policy & Advocacy

ƒ Opposing predatory lending

– Predatory mortgages
– Overdraft loans
– Payday lending
ƒ Advocating for credit unions
ƒ Researching minority access to capital
 Residential Real Estate Development

ƒ 84 homes built or
remodeled and sold to
low- and moderate-
income families

ƒ $9.9 million invested

ƒ Currently active in
Charlotte, Durham,
Fuquay-Varina,
Greensboro, & Goldsboro
Downtown Goldsboro New Homes

ƒ 12 new single-family
homes planned for the
South John/ William
Street Neighborhood
ƒ 3 under construction
January 2008
ƒ Land acquired and
donated by City of
Goldsboro to Self-Help
1184 square feet
Commercial Real Estate Development
ƒ $62 million invested
in downtowns
ƒ 15 buildings (600K
square feet) of
affordable
office/commercial
space
ƒ 9 cities across North
Carolina & DC
Locations
 Asheville
Public Service Building
ƒ Built in 1929 for
CP&L
ƒ Art-deco style
ƒ Renovated 1992
ƒ Helped revitalize
Wall Street district
 Charlotte
Great Aunt Stella Center
ƒ Former church
ƒ Sanctuary used for
weddings and
receptions
ƒ Home to Self-Help
branch and
mortgage
operations
ƒ Renovated 2005
 Greenville
Proctor Hotel

ƒ Built 1911
ƒ Renovation
completed 2004
ƒ Tenants: East
Carolina University,
Café Europa, Twist
Salon, Self-Help,
Uptown Greenville
 Fayetteville
Market Square Business Center

Wilson
Mercy Hospital
 Sanford
Wicker Business Center
 Wicker Business Center
ƒ Developed in partnership with Brick Capital CDC
ƒ Renovation complete in 2006
ƒ Home to Central Carolina Community College,
Excel Tutoring, Business Incubator
 Rocky Mount
ƒ Former Peoples
Bank building
ƒ Historic renovation
completed 2006
ƒ Anchors:
Edgecombe
Community College
Golden Leaf
Foundation
Peoples Building Before
Peoples Building After
 Permanent Sources & Uses
HTC equity $1,254,000 Purchase $32,000

Debt $1,775,000 Hard costs $2,424,000

(FHLBA EDGE)
Self-Help equity $182,000 Soft costs $406,000

Deferred fee $225,000 Developer fee $574,000

Total $3,436,000 Total $3,436,000

 Self-Help’s Tenants
by square feet (~400,000’ in NC)

Educational
Institution
Government Non-profit
7%
12% 33%

Self-Help branches
21%
Businesses
27%
 Self-Help’s Tenants
by count (172)

Non-profit, 67

Educational
Institution, 3 Businesses, 81

Government, 7
Self-Help branches,
14
 Monroe
Bearskin Mill
 Rocky Mount
Old U.S. Post Office
Commercial Real Estate Lending
ƒ Loan size from $180,000 to $40 million;
typical size $500,000 to $2 million
ƒ $80 million across 12 projects in North Carolina
downtowns since 2003
New Markets Tax Credit Loans
ƒ Loan to Value 70-80%
ƒ 7 year term; no prepayment allowed
ƒ 20-25 year amortization
ƒ Interest only periods
ƒ Fixed interest rates starts at 7-year Treasury + 230
basis points (as of Jan 30, 5.45%)
ƒ Origination fee 1%
 Penny Building
Downtown Durham NC
ƒ $525,000 New Markets Tax
Credit loan from Self-Help with
participation from City
ƒ Loan closed December 2005
ƒ Former Penny Furniture Co
building, built in early 1900s.
ƒ Now residential on second floor,
open floor-plan office space on
first floor.
 Standard Hardware Building
Downtown Gastonia NC
ƒ $1.5 million New Markets Tax Credit loan in Dec 2007
ƒ Project received Historic Tax Credits
ƒ Mixed-use revitalization of former hardware store
ƒ Now loft apartments, office and retail space
 SBA 504 Loans
ƒ Low Downpayment:
10% LTC (loan-to-cost)
for most existing
businesses

ƒ Great fixed interest rate:

6.5-7.0% for most of
2007

ƒ Long-Term Financing:
20 years on real estate; Pembroke Hardware
10 years on equipment
 What we look for in loans
ƒ Relevant experience on development team
– Lead developer; contractor, architect
ƒ A business plan & market knowledge
ƒ A comprehensive project budget
ƒ At least some space pre-leased
ƒ Equity available to put into the project
 Call Us to
Talk About Your
Next Main Street Project

For development, contact John Shanley

919-956-4612 • john.shanley@self-help.org

For a loan, contact Annie Scorza

919-956-4418 • annie.scorza@self-help.org

www.self-help.org