Friends of Southbanc:

It’s been a busy couple weeks and getting busier.

We’re on TV!

WUSA9 graciously profiled Southbanc in their review of Halcyon. Check it out below or here.

Business Development

We’re working to get Fund 1 integrated into Southbanc which will provide a $150 Million vehicle to invest in real estate and venture projects. We’re also opening up a separate vehicle for a couple interesting projects we have in the pipeline with shorter investment timeframes. If you’re interested in seeing the prospectus for any of our current open opportunities, drop us a note.

Active Projects

The first is a two unit conversion in DC in which we’re partnering with the owner, who’s owned his townhome since as he calls them “The Rayful Edmond days.” By splitting the building and expanding the size, he gets to capture the value of his tenure by creating brand new permanent unit financed by the income from the second unit were building. We want to get really good at this because this is a prime method of both preventing displacement and creating long term wealth for people who have assets but don’t have the cash to bring them online. This is especially important in cities like Washington DC, LA, and New York, where there are substantial populations of black and brown elderly who simply don’t have anyone to pass on properties and may not have the liquidity to do repairs and renovations that would create real value for them. It will look something like this when completed.

We’re also doing a not too dissimilar deal using TOPA rights for a 2-unit in (I know some people say on, but that’s weird) Capitol Hill. That one will significantly expand the number of bedrooms in the unit to increase housing availability in what is a very tight market right now.

Had a great meeting with the sponsor of a really amazing Miami-based art fair last week and we’re excited to get to work finding them a new space for what will look like gallery and event space, training and co-working, and potentially even artist residency space. Look for an announcement soon on these and some other great projects in the hopper.

We had great calls and meetings last week with Sorensen, Milken Institute, and Dantes Partners, and next week, we’ll detail some of the opportunities they have for creating impact.

Survey Results are Back!

Thanks to all of you who took the time to fill out the Black Wealth survey. We just got back the results from Deloitte and we’ll expand on this in weeks to come but here’s some of the draft raw data we thought was interesting. The big takeaway here: A majority (about 54% of respondents) are interested in investing in real estate but didn’t have a good option or didn’t know how. Which is exactly what we’re trying to solve for here. Also, preventing gentrification and displacement and increasing affordability were huge drivers for what people want to see out of our investments, which aligns with our mission.

Accelerator Opportunity

Found this through my friend Rasheeda (@rncreighton on the Twitter): Capital One is opening applications this week for their Grow at 1717 Non-Profit Accelerator. The accelerator goes from September 9-December 2 and aims to help Richmond (VA, not CA) based non-profits grow. The 12 week program will include a full needs assessment, workshops, project support, Pro Bono volunteerism, peer-to-peer learning, and mentorship; equipping participating organizations with new knowledge, tools, connections, and visibility.

Apply to Grow at 1717 here!

Upcoming Events

June 25, 2019, Washington DC: Bisnow Opportunity Zone Conference

Great opportunity to get updates on whether or not deals are really happening outside of one-offs. Won’t be attending but I’ll get a download from advisors and mentors who are attending.

July 26-27, 2019,  New York, NY: Diversity in Commercial Real Estate Conference

Really dynamic lineup of speakers so I’m excited about this one. My partner is on the host committee and the speaker lineup is extremely talented.

September 11-12, 2019, San Francisco, CA: Tech Inclusion 

This should be a really awesome conference. Given the nexus between tech and real estate and the challenges faced by non white male folks in both industries, can’t wait to see what happens.

Real Estate and Op Zone News

Opportunity Zones and Gentrification

NCRC has found that 69% of neighborhoods that gentrified between 2000 and 2017 are either an Opportunity Zone or they are adjacent to one. Welp.

Diverse Freelance Startup Incluzion open for Investment

Freelance Startup Marketplace Inclusion is launching a crowdfunded round for its marketplace that help businesses recruit, hire, and pay diverse talent. Theyre looking to scale this offering and investment minimums are only $200

The Menkiti Group launches Opportunity Zone Fund

I used to work for MG and am really excited to see how they’ll leverage their immense talent and experience in the space.

Freddie Mac gets into the Reno Loan game

Freddie now offers an alternative to the FHA 203(k) program. May be a good choice for buyers who want to roll their renovation costs into a purchase and is a little more flexible for multi-units

Making Opportunity Zones Work for Black Communities

Venroy July, who has been extremely vocal in the Opportunity Zone space, wrote a great piece for Black Enterprise here and talks about the power of networks and recycling black dollars.

Harlem Capital Scores TPG Investment

Big news in the Diverse VC world, small as it is. TPG Capital, the $108 billion in assets private equity giant cofounded by billionaires David Bonderman and Jim Coulter, is taking a minority stake in Harlem Capital and becoming a limited partner in its first pooled fund. If you haven’t already, check out Harlem Capital’s John Henry’s “Real Estate Saturdays” series on Instagram

Summer Tunes

Summer’s finally here and you’ll need some tunes by the pool so check out my buddy Carlos Danger’s latest mixtape

 

See you next week! If you have any opportunities, links, or improvements, please let me know!

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