Reinvestment Fund financing is incentivizing the development of unsubsidized affordable housing in Philadelphia’s Brewerytown.
Long-time borrower, SAA|EVI Development is renovating a mixed-use quadraplex rowhouse located on the Girard Avenue commercial corridor, to create a retail store and apartments above. The renovation is resulting in three apartments with rents affordable to incomes at 80% to 100% of the area median income.
Located just north of Center City Philadelphia, the Brewerytown neighborhood is largely influenced by the Center City market in terms of demand, access/linkages, and overall market appeal. Given the location of the project in an area at risk of gentrification and the affordability of the rents, Reinvestment Fund’s financing includes concessionary rates in exchange for borrower’s agreement not to increase the annual rents by more than 3%.
The commercial space in the property is being leased to Red Bay Coffee, an African American owned and operated coffee company founded in Oakland, CA. Red Bay Coffee currently operates multiple retail locations in the Northern and Southern California with a team that is committed to diversity, inclusion and creating economic opportunity for those who have traditionally been left out of the specialty coffee industry, especially people of color, the formerly incarcerated, women and people with disabilities. It recently closed on a significant investment allowing it to expand its roasting and retail operations nationwide.
Red Bay Coffee also plans to work with SAA|EVI to develop and operate a roasting location in Philadelphia. Their plan is to offer an alternative coffee supply for offices, cafés and restaurants in the region looking for higher quality coffee experience for their employees, clients and customers.