Forward on 4th Street, Reno NV
The 4th Street Corridor is the Gateway to Downtown, Reno. After thirty years of neglect, the municipal government made major public infrastructure improvements in street improvements including the promotion of Opportunity Zones to catalyze private sector investment into the district. Vacant buildings with severe deferred maintenance issues coupled with current expensive construction costs have created a “distressed neighborhood designation” by the U. S. Treasury Department.
Common Ground’s Forward on 4th Street strategy will leverage the latest economic development tool, Opportunity Zones, to reposition distressed assets for the benefit of the neighborhood. Like all of our projects, we incorporate all the best practices in socially responsible commercial real estate development: early site control, equitable financing structure, social impact capital, and shared management.
Unlike any of our other project we’ve taken on, Common Ground developers have envisioned an equitable financial framework that will bring to life one our deeply held values: Shared Prosperity.
The Reno-Spark metropolitan area has experienced a population growth on average about 3% a year since 2010 with a total population of over 500,000 people. Downtown Reno’s resident population has increased by 1,000 people within the last year.
New industry has expanded into the region and Reno’s downtown has begun to transform. Reno Nevada’s commercial real estate market is at an all-time high. The announcement of Opportunity Zones has created a frenzy of investment funds, the real transactions happen once site control within the zones are achieved. We know all too well the consequences of high growth in low income areas, displacement.
Common Ground in partnership with Sustainable Urban Real Estate Fund|SURF are investing in large commercial and residential projects that protect low-income residents, community arts organizations and social service providers from the effects of gentrification and the soaring cost of living.
Our Shared Prosperity-based financing structure creates opportunities for people to invest in the development of the 4th Street Commercial Corridor who are normally left out of commercial real estate transactions. We provide investment opportunities that are sized with the community investor’s needs in mind and allow regular people to participate in the equity of projects.
Commercial Real Estate financing for redevelopment of distressed properties is particularly difficult given complicated governance structures and operations funding which are inherently incompatible with traditional commercial real estate financing. Common Ground’s project has been structured to accommodate this complexity.
Each of Common Ground’s commercial real estate projects will be individually financed for each opportunity. Individual shares will be made available consistent with Common Ground’s values of shared prosperity, inclusion, and connection by creating opportunities for regular community members, residents, and small business owners to participate in the equity of the commercial real estate transformation of the 4th Street Corridor transformation.
Strategic Revitalization Plan
Common Ground is well positioned to acquire six to eight properties along the 4th street corridor. Our revitalization plan will include acquisition and redevelopment of existing buildings. In addition, we’ll:
Partner with local business to ensure that the commercial spaces are redeveloped with local partners
Provide new acquisitions with ownership opportunities
Issue a 10-year plan to each acquired parcel for short-term, mid-term and long-term positioning in the areas of short-term stay hotels, auto body shops and local bars.
FULL SERVICE EXPERTISE
Common Ground understands that we are partnership with the communities who will be most impacted by our real estate development style. We work in neighborhoods that are under the threat of gentrification and seek to find ways to incentivize opportunities for people to participate in the financial transactions of our projects.
Private equity institutions need a conduit to partner with and deploy their social impact capital into the communities that we to serve. Common Ground’s services are able to address these concerns through our expertise of the following:
Early Site Control
Entitlements and Permitting
Creative Tax Credit Financing
Crowd Source Financing
Public Private Partnership
Community Development Real Estate Financing