MBS Urban Initiatives CDE, U.S. Bancorp Impact Finance, and Nonprofit Finance Fund announced the closing of $17.5 million in New Markets Tax Credit financing
MBS Urban Initiatives CDE (MBS UI), U.S. Bancorp Impact Finance, and Nonprofit Finance Fund (NFF) announced the closing of $17.5 million in New Markets Tax Credit (NMTC) financing for the South City Early Childhood Education Center (ECEC)—a transformative new facility that will expand access to high-quality early learning opportunities in Memphis’ South City neighborhood.
Developed by Urban Renaissance Partners and ComCap Partners, the 17,495-square-foot South City ECEC will serve up to 188 children ages 2–5 and provide priority enrollment and financial aid for neighborhood families. The project adapts and expands the long-vacant MLK Transitional Academy school building in the heart of South City, a community being revitalized through HUD’s Choice Neighborhoods Initiative with leadership from the Memphis Housing Authority and the City of Memphis.
This project embodies what New Markets Tax Credits were designed to do—bring critical community assets and opportunities to neighborhoods that faced significant disinvestment”
— Cady Seabaugh, Senior Vice President and Director of NMTC at MBS
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“This center represents a vision shared by residents more than a decade ago—a desire for their neighborhood to include great schools and opportunities for their children,” said Archie Willis III, President of ComCap Partners. “It’s gratifying to see that vision realized through collaboration, persistence, and the belief that all families deserve access to quality education close to home.”
The $17.5 million investment was made possible through a combination of $10 million in NMTC allocation from MBS Urban Initiatives CDE, $5.5 million from Nonprofit Finance Fund, and $2 million in NMTC equity investment from U.S. Bancorp Impact Finance. Additional funding was provided by the Assisi Foundation of Memphis, Kresge Foundation, Kemmons Wilson Family Foundation, Neighborhood Preservation, Inc., the City of Memphis, HUD, and other philanthropic donors. Flintco serves as general contractor, and brg3s Architects and Architecture Inc. designed the facility.
“This project embodies what New Markets Tax Credits were designed to do—bring critical community assets and opportunities to neighborhoods that faced significant disinvestment,” said Cady Seabaugh, Senior Vice President and Director of NMTC and Strategic Initiatives at MBS Urban Initiatives CDE. “By investing in early childhood education, we’re helping to ensure that every child in South City has the opportunity to start strong and thrive.”
“Our tax equity investment in the South City Early Childhood Education Center is an example of how we provide custom financing solutions that help our clients bring critical resources to communities,” said William Carson, SVP, U.S. Bancorp Impact Finance, the community development financing subsidiary of U.S. Bank. “Community facilities like this show how public, private, nonprofit and financial partners can work together to strengthen neighborhoods and expand opportunity.”
“Access to quality early education is essential for both children and the economic vitality of their neighborhoods,” said Onika Lewis, Vice President of NMTC at Nonprofit Finance Fund. “We are honored to support this project, which brings new resources, jobs, and energy to South City.”
Operated by Porter-Leath, a leading Memphis-based nonprofit with more than 25 years of early childhood education experience, the center will include both Head Start and tuition-based opportunities for preschool students.
“Porter-Leath is proud to return to the South City campus and increase access to high-quality early childhood education seats in the community through this partnership,” said Sean Lee, Porter-Leath President. The project will create approximately 30 full-time permanent jobs and reactivate a once-abandoned property as a thriving educational hub for the community. For more information on enrollment or employment, visit porterleath.org/headstart.
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