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Clinton, IA (2021)

Wilson Lofts

NMTC Allocation supported the adaptive reuse of a historic building into a mixed-use housing and business incubator in Clinton, IA.

Investment

  • NMTC Amount: $6,500,000
  • Total Project Cost: $13,885,313

IMPACT

  • 27 FTE jobs
  • 171 construction jobs
  • The Borrower will set-aside at least 20% (or 4 units) of available rental units to persons with incomes at or below 80% AMI. Tenants will receive below-market rents.

Investor

Project Description

NMTC Allocation supported the adaptive reuse of a historic building into a mixed-use housing and business incubator in Clinton, IA. As the tallest building downtown, the Project will have the following uses supporting job creation and small business development:

  • Residential (28,363 SF): 33 rental units, of which 20% will be affordable to persons at 80% or less of the area median income (“AMI”). The apartments range in size from 500 sq. ft. to 1,276 SF; and there are 10 1-bedroom apartments and 23 2-bedroom units.
  • Business Incubator (5,360 SF): Makers on 5th will operate a business incubator with a mission of “nurturing the development of start-up retail businesses by providing equal access to a place of opportunity for highly motivated entrepreneurs to open, learn, develop, and strengthen their retail skills and presence within Clinton, IA.” It has adopted a “Shop Smart, Shop Local” philosophy to promote the patronage of locally owned businesses and those owned by low-income entrepreneurs. The ground floor space will be configured so that up to six retail operations, with space needs of 572 sq. ft. – 1,000 SF, can enter into flexible and below-market leases of at least 1 year with two options for an additional year totaling 3 years.
  • Kitchen Incubator (4,000 SF): Clinton Culinary will offer four entrepreneurial spaces with one shared commercial kitchen for rent, to enable a wide variety of food businesses to launch, scale, and grow operations. In addition to a host of business planning and technical assistance services, the Project Sponsor’s subsidiary CDFI, Bridge Investment Community Development Corporation (as described in the Project Sponsor Section) will provide financing assistance. This will be the city’s first kitchen incubator. The food incubator reduces the barriers to entry and associated risk of starting a food-based business.

The Borrower will set-aside at least 20% (or 4 units) of available rental units to persons with incomes at or below 80% AMI. The affordable rents will be $833 compared to market rents of $967.

  • Business Incubator: The sub-tenants will initially pay $9/psf, approximately 30% below comparable market space compared to $13/psf, typical to the downtown market. Tenants will be gradually increased to market rent through renewals to prepare them for their own space outside the incubator. Tenants will have a lease term of a minimum of one year, with options to renew, compared to a typical three-year minimum lease.
  • Kitchen Incubator: The sub-tenants will initially pay $10/psf, approximately 30% below comparable market space compared to $14/psf, typical to the downtown market. Tenants will be gradually increased to market rent through renewals to prepare them for their own space outside the incubator. Tenants will have a lease term of a minimum of one year, with options to renew, compared to a typical three-year minimum lease.

MAP

Address: 210-217 Fifth Avenue South, Clinton, IA 52732

Census Tract: 19045000100

Other Iowa Projects

Des Moines, (2019)

Council Bluffs, (2005)

Otumwa, (2020)