Leveraging mixed use - canavos

Transformation of Downtown Roanoke

Costa CanavosVP, Real Estate Lending

ManagerVirginia Community Capital

1

2

Who is Virginia Community Capital?

• A multi-million $ non-profit, CDFI & banking entity– Providing innovative loan and investment

solutions for affordable housing and economic development projects

– Operating statewide in Virginia

VCC Real Estate Lending Team• Organization based in Christiansburg with a

Richmond office• I am based in Richmond with Monique

Johnson. • Dawn DeHart and Shaun Rai are based in

our Christiansburg office. • Between the four of us we cover the entire

Commonwealth of Virginia for real estate loans.

• Recently started small business lending team. Wayne Waldrop manages that department and the small business lenders are Paul Nolde and Jacob Willis 3

Sometimes it just takes one project to start a revitalization

revolution

4

The History of the Hancock Building

• Ed Walker and Scott Graeff developed the property

• City of Roanoke was a partner in the deal providing a one time economic development grant for over $800,000 towards façade work on the property.

• 58 multi family apartments and first floor commercial space.

• Highly controversial project

5

Downtown Roanoke Pre 2006

• Typically seen as an 8 to 5 downtown with limited housing options

• Perception that nobody wanted to live downtown and people only worked downtown and lived in other areas

• Hancock project helped to break the myth that nobody wanted to live downtown

• All 58 apartments leased prior to grand opening of the building

History of the building

7

Start of the renovation April, 2007

8

The Hancock Post Construction

9

• .

Interior Photos of Hancock

10

Key Partners in the Success of Project

• Ed Walker & Scott Graeff• City Scape General Contractor• City of Roanoke former City Manager

Darlene Burcham• Roanoke Redevelopment & Housing

Authority• VHDA• Valley Bank

11

Downtown apartment projects after Hancock

• HL Lawson • Cotton Mill• Patrick Henry• 401 Campbell Ave Lofts• Lofts at West Station • River House• Shenandoah Building• Auction House• Ponce De Leon

Auction House Roanoke

13

Auction House Roanoke

14

Loan Details

• George Stanley developer and his company Cityscape served as GC

• VCC provided the construction loan • Fannie Mae permanent loan • 21 rental apartments• Loan covenant 40% of units set aside for

persons making 80% or less area median income (City of Roanoke $50,880)

• All units leased prior to receiving CO

15

Crystal Tower at start of construction

16

Crystal Tower becoming The Ponce De Leon

17

Recent Interior Pictures of Ponce

18

Crystal Tower Roanoke

• John and Faisal Khan developers• $7.6 million construction loan with VCC• Construction loan participant Hometown

Bank • VHDA permanent lender• Affordable housing 50% of units affordable

between 80%-120% area median income• Remaining 50% of units market rate

Crystal Tower

• 90 apartments • Project upon completion will be named the

Ponce De Leon• Roughly 10,000 commercial square feet on

the first floor of the building• Continue revitalization efforts in downtown

Roanoke. • Promote income diversity in strategic

locations

Photos of HL Lawson Building

21

Patrick Henry Lofts

22

Important partners for continued success

• Strong support from local government• Developers with experience in historic

renovation• Federal and State historic tax credit

program• Carilion Hospital & Virginia Tech

23

24

Contact Information

Costa CanavosVP, Real Estate Lending Manager100 West Franklin Street Suite 200Richmond, VA [email protected](804)344-5484 x 121

25