CLEVELAND, Ohio — Cleveland Development Advisors, the real estate financing affiliate of the Greater Cleveland Partnership, is broadening its footprint beyond Cuyahoga County with a planned investment in a major downtown Akron project. CDA announced Friday that it has committed $6 million in federal New Markets Tax Credits to the Bowery, a $40 million redevelopment of six vacant buildings on South Main Street.

The project will include 92 apartments, 23 of them at lower-cost rents; and 40,000 square feet of commercial space, including a grocery store, offices and a microbrewery. Without an assist from CDA, the Bowery – a project the city has been working toward for a decade – was in peril of stalling, Kevin Brokaw, a member of the development team, said in a news release.

CDA also has earmarked $10 million in New Markets Tax Credits for Glenville Circle North, the first project to spring from Cleveland Mayor Frank Jackson’s push to drive investment into city neighborhoods where private development hasn’t quite caught on. On East 105th Street in the city’s Glenville neighborhood, the project will include 63 mixed-income apartments and a 13,000-square-foot business incubator.

“Being the stabilizing force and catalyst for change also means that the area is in transition, making financing difficult,” developer Wes Finch said in a news release. The New Markets Tax Credits program is designed to lure investment to economically distressed communities.

The U.S. Treasury periodically awards credits to community development entities, such as CDA, through a competitive process. Those entities, in turn, allocate the credits to real estate or business deals, helping those projects close financing gaps by attracting private investors seeking a federal tax break. Read more from realestate.cleveland.com…

thumbnail courtesy of cleveland.com