Adaptive Rehabilitation Construction Begins on Broad & Grace Streets

Mayor Dwight C. Jones joined developers Mike Glass and Ron Hunt, managing partners of 214 East Grace Street, LLC, in celebrating the start of an adaptive rehabilitation construction project at 213 East Broad Street and 214 East Grace Street today. As a symbolic mark to the beginning of the construction, the three joined other project stakeholders in knocking down a wall with sledgehammers within the Grace Street property.

“Both of these properties will provide affordable live-work spaces that can accommodate cultural enterprises along our Broad Street corridor and Arts District,” said Mayor Jones. “I commend the efforts of the developers, Mike Glass and Ron Hunt, as they begin the process of bringing life back into these properties.”

The $3.6 million project is a public/private partnership that will feature more than 3,000 square feet of commercial/retail space and 21 affordable rental units once completed. Virginia Community Capital is the primary project lender and will provide construction and permanent financing, with the City of Richmond participating in the project by providing gap financing through the City-wide Revolving Loan Fund. The project is the first and largest to utilize the City-wide Revolving Loan Fund.

“I thank Mayor Jones and Peter Chapman, DCAO of Economic and Community Development, for assisting us with financing as we would have never been able to get this project started without the City’s assistance,” said project developer Mike Glass.

Mayor Jones noted that, “It was my desire to establish a city-wide loan fund of $2 million which would be available to stimulate the revitalization of Richmond’s neighborhoods and promote permanent job creation for low and moderate income residents by helping to bridge the credit gap for independent real estate developers and smaller employers. I am proud to see the funding assist this project as it will strengthen the surrounding area’s emerging identity as a vibrant arts and entertainment district.”

Additionally, Pasture, LLC, has recently closed a loan with the city through the new funding stream for the build out of a restaurant. This deal is part of a $1.5 million adaptive historic tax credit rehabilitation project at 416 East Grace Street, in the old Montaldo’s women’s clothing store. The restaurant construction is currently underway, as all four apartments have been leased and the restaurant is slated to open in November 2011. The restaurant is expected to create several full-time jobs and more than ten part-time jobs in the city of Richmond. The City’s Department of Economic and Community Development is continuing to process other revolving loan applications.