CT/KDF COMMUNITY DEVELOPMENT PARTNERS ANNOUNCE FINANCING OF NORTHGATE GONZALEZ MARKET IN BARRIO LOGAN, SAN DIEGO
SAN DIEGO, CA – January 10, 2012 – (RealEstateRama) — Aliso Viejo, Calif.-based CT/KDF Community Development Partners, a joint venture between CT Realty Investors and KDF Communities, has placed $10.45 million of its New Markets Tax Credit (NMTC) allocation to develop a 36,000-square-foot, freestanding market in the Mercado del Barrio project in Downtown San Diego in concert with its investment partner, Wells Fargo.
The Northgate Gonzalez Market will be located at 1950 Main St. near Chicano Park in a predominantly Latino community near the base of the Coronado Bridge. Encompassing two city blocks on approximately 6.8 acres, the Mercado project is a collaborative effort between San Diego’s Redevelopment Agency, the San Diego Housing Commission and the U.S. Department of Housing and Urban Development, along with private entities Shea Homes, Chelsea Investment and Northgate Markets.
Opening of the store is planned for the summer of 2012. The new market will add approximately 150 construction jobs as well as 150 permanent jobs to this underserved area at a critical time of high unemployment in the area.
Northgate Gonzalez Markets is a Hispanic-themed supermarket which provides its patrons with a homeland shopping experience. Northgate recently opened a highly acclaimed new location in the City Heights area, the company’s seventh store in San Diego County and the 34th in Southern California. The company’s local market penetration allows it to buy in bulk and pass on lower costs to the consumer. Because of its size, the store will carry a variety of products from the United States, Mexico, Brazil and many other Latin American countries.
Northgate’s choice to locate in Barrio Logan is part of the Gonzalez family’s vision to be the No. 1 Hispanic chain in Southern California. Stores are placed in underserved and highly-concentrated Hispanic neighborhoods. The original Northgate Market was opened in Anaheim in 1980 by Miguel Gonzalez, who immigrated to Los Angeles with his oldest sons after his shoe store burned down in Jalisco, Mexico. His dream was to open enough stores so that each of his 13 children could run their own supermarket. Today, the business is run by 12 of the 13, with grandchildren now heavily involved.
CT/KDF’s financing of the Northgate market was generated through the company’s NMTC allocation from the federal government. CT/KDF received $90 million in late 2006 from the Community Development Financial Institutions Fund (CDFI) of the U.S. Treasury Department for investment in distressed areas.
“The federal New Markets Tax Credit program is targeted toward investment in new construction or substantial rehabilitation of properties in low-income areas,” said Sarah Woodward, chief investment partner for CT/KDF. “Compared to conventional, market-rate financing – especially financing for distressed areas – NMTC money is very attractive and may be the only financing available for a worthy project in a lower-income neighborhood. We are proud to be a part of bringing this project to fruition.”
The Barrio Logan project is CT/KDF’s sixth transaction using its NMTC allocation, and its third financing of a Northgate Markets grocery store.
Upcoming financing opportunities for the CT/KDF team will come from approximately $37 million of investment power stemming from funds that have been returned to the company that are now available for reinvestment in worthy Southern California projects. Woodward said, “We are especially fortunate to have this unique pot of NMTC financing which is rare in the market, as these funds only need to remain invested for three to four years, rather than the typical seven-year NMTC horizon. We are particularly interested in finding ground-up or major project rehabilitation opportunities for this money, as this shorter investment timeframe fits well with asset turnaround situations.”
For more information, please visit www.ctkdf.com or contact Sarah Woodward at 714/544-9930.
Since its establishment in 1994, CT Realty Investors has completed more than 200 transactions with value in excess of $2.5 billion through a series of 10 independent discretionary private equity real estate funds, and continues to invest in institutional quality industrial properties, debt instruments, multi-family properties and other income-producing assets. The focus of CT Realty’s investment activities is to acquire well-located assets in major markets with the potential to enhance their value through a solid, hands-on management approach. For further information, contact Carter Ewing at CT Realty Investors at 949/330-5777 or visit www.ctrinvestors.com.
Contact:
Donna Hahn
Hahn Communications
(949) 458-3983
donna (at) hahnmarketing (dot) com
