Investment Focus

MICHIGAN

Develop Michigan (DMI) investments will be made throughout the State of Michigan. A focus will be placed on the metropolitan areas of Detroit, Grand Rapids and Mid-Michigan, as well as rural locations.

A critical need for the State of Michigan is access to capital, both long-term financing and short-term mezzanine capital, for redevelopment projects. This source of debt has been highly effective in Michigan’s neighboring states: Ohio, Indiana, and Illinois. DMI provides capital to eligible projects that will provide substantial economic impact to their communities and regions through job creation, revitalization and services – all of which DMI will track.

DMI Fact Sheet

Investment Types

  • Mixed-Use Commercial and Residential
  • Value-added acquisition and repositioning of properties
  • Turkey Facilities for Universities, Hospitals or Major Corporate Employers
  • Community Facilities (non-profit)
  • Modern Industrial Facilities
  • Office Buildings
  • Warehouses
  • Commercial Facilities
  • Core Urban Redevelopments

Investment Strategy

  • Originations – Quality investments through broad staff and relationship network
  • Alternative Funding – Utilize DMI platform (tax credits, federal/state/local funding, etc.)
  • Active Management – Push deals to the finish line through active facilitation
  • Risk Mitigation – Underwriting/due diligence structuring and asset management expertise
  • Impacts – Measured and reported

Financing Solutions

Senior Debt Financing

For existing, stabilized assessor less risky tranches of investment capital that meet underwriting criteria, DMI will provide competitive, longer-term senior debt financing solutions.

Mezzanine Capital

Mezzanine Capital is a critical financing source for Develop Michigan projects. DMI will underwrite and provide shorter-term mezzanine capital for higher-risk tranches of a real estate transaction’s capital sources.

Bridge Lending

Bridge Lending is another critical financing source for DMI projects. DMI will underwrite and provide shorter-term bridge capital during construction periods for capital that cannot be made available until a project is complete, such as tax credits and grants.

Gap Financing

Projects of greater scale often involve a very complex ‘capital stack’. For example, the repositioning of an industrial site might require any of the following types of funding: federal brownfield funding, federal infrastructure monies, local participation through tax increment financing, enterprise zone incentives, equity (private or developer), debt (construction loan and long-term financing from commercial banks or the debt markets) and New Market Tax Credits (NMTC). Cinnaire and DFG both have extensive experience in working with and securing capital from federal agencies, which may be necessary to fund portions of projects meeting their respective criteria.

Cinnaire and DFG have very strong relationships with federal agencies such as Housing and Urban Development (HUD), the Department of Commerce, U.S. Department of the Treasury (Community Development Fund Institute – CDFI), the Department of Energy, U.S. Department of Agriculture (USDA) and the U.S. Department of Transportation. These are all departments with funding programs related to the types of projects we anticipate financing. DMI provides substantial added value to the process given its team’s extensive internal capacity to identify, access and structure other external investment dollars. Securing other federal, state, local and foundation dollars for complex projects augments the ability of DMI to close challenging investments and enhances the overall effectiveness of DMI.