Chelsea Investment Corp. Honored for Providing Quality Affordable Housing for San Diegans with Developmental Disabilities

SAN DIEGO (Sept. 22, 2016) -- When Chelsea Investment Corp. (Chelsea) opened Independence Point in Lincoln Park just six months ago, it was San Diego’s first affordable housing community built with apartments set aside for people with a developmental disability.

This breakthrough property was honored by industry, civic and governmental leaders on Saturday night during the annual ICON awards, presented by the Building Industry Association (BIA) of San Diego County to showcase the best in the business. 

In recognizing Chelsea’s groundbreaking vision for Independence Point, the BIA commended Chelsea for its “monumental achievement in terms of quality affordable housing for persons or families with a member who has a developmental disability.”

In presenting Chelsea and Independence Point with a one-of-a-kind Honorable Mention in the Best Affordable Project category, the panel of judges said: “These units being the first ever built for the developmentally disabled population is one thing [but] getting the San Diego City Council, the San Diego Housing Commission, State Department of Housing & Community Development, San Diego Regional Center, and the Foundation for Developmental Disabilities to be all on the same page is an amazing achievement of teamwork and dedication for this very important cause.”

Located in San Diego’s Council District 4, Independence Point was also honored in June by the San Diego Housing Federation at the 2016 Ruby Awards, the county’s largest affordable housing industry recognition event. The award for Best Supportive Housing was presented by The Honorable Myrtle Cole, 4th District City Councilmember, who provided assistance and support for the project since its inception.

This is the second Ruby Award for Independence Point. In spring 2015, while under construction, the social service visionaries at the San Diego Regional Center and the Southern California Housing Collaborative were honored as Housing Heroes for their leadership in the project. 

With 25 of 32 apartments reserved for families with a disability, this private, gated complex is located at 327 S. Willie James Jones Ave. Originally designed for market rate for-sale town homes, this blighted piece of vacant land was acquired by Chelsea and transformed in favor of a community devoted to serving this almost invisible, special needs population. 

“Imagine for a moment that you’re a parent or a family member of a person with a developmental disability,” said Jim Schmid, president and CEO of Chelsea Investment Corp. “Your single biggest fear is, “where will my child, brother or sister live when I’m gone?” Independence Point is a place where individuals can live independently in homes that are designed to meet their unique circumstances.”

Thanks to its funding and development agreements, Independent Point will maintain its affordable designation for 55 years. It is convenient to grocery stores, schools and public transportation and benefits from on- and off-site social services provided by the Southern California Housing Collaborative, through the San Diego Regional Center.

Affordable apartments at Independence Point offer three or four bedrooms and a private, attached garage. The development includes a community center with offices, a community room, laundry facilities and three accessible flats for people with mobility challenges, all served by an interior elevator. 

“Though this is a relatively small project in a city with huge needs for this type of affordable housing, we believe this project can be replicated by willing partners in both the public and private sector,” said Schmid. “We were blessed by a coalition of dedicated social service providers, governmental agencies and our innovative planners, designers and contracting partners at Emmerson Construction. We can’t wait to do this again.”

This is the second year in a row the BIA Icon awards have recognized Chelsea, which won Best Affordable Project last year for Alpha Square, a 203-unit building serving homeless and very low income individuals in downtown San Diego.

ABOUT CHELSEA INVESTMENT CORPORATION

Since 1984, Chelsea has developed 9,215 units of affordable housing at a cost in excess of $1.5 billion. The firm’s development portfolio includes urban infill, mixed-use, suburban inclusionary, acquisition rehab and rural developments. Approximately 20 percent of the units developed by Chelsea serve specialized populations, including seniors, farm workers, homeless households, and individuals with physical and developmental disabilities. The company is one of the few fully integrated affordable housing developers in the region that offers turnkey development, general contracting and property/asset management services. Chelsea is a long-term owner and operator and maintains a portfolio in excess of 5,000 affordable housing units. For more information, please visit www.chelseainvestco.com.

Border Communities Capital Co. Helps Fund A Job-Generating Beef Processing Plant Through New Markets Tax Credit Financing

Border Communities Capital Company, LLC (BCCC), an affiliated entity of Chelsea Investment Corporation (Chelsea), has closed a $7.76 million loan financed through the New Markets Tax Credit (NMTC) program with One World Beef (OWB) for the acquisition and rehabilitation of the former National Beef processing plant located in Imperial County in the City of Brawley, Calif. The project includes a 337,000-square-foot beef processing facility and is located on approximately 100 acres of land. 

Financing for the project involved a consortium of lenders and equity investors. Cityscape Capital Group, LLC provided an additional $6.6 million of NMTC loans and JPMorgan Chase was the equity investor for the full NMTC allocation. In a strong show of local support, the County of Imperial and the Imperial Irrigation District each provided $2.5 million loans. Clearinghouse Community Development Financial Institution and Bank of Southern California each provided $5 million loans. 

One World Beef owner/operator Eric Brandt is a third-generation Imperial Valley cattle feeder and veteran beef marketer who bucked industry trends in the early 1990s by eliminating the use of hormones. Brandt Beef is currently the only beef producer to receive the prestigious Master Chefs’ Institute Seal of Excellence for its commitment to producing a superior culinary product.

“The significance of this deal to the community cannot be overstated,” said Jerry Hannon, Chelsea’s Chief Financial Officer. “When the beef processing plant was closed by the prior owner in April 2014, it had a tremendous negative impact on the County of Imperial, which has one of the highest unemployment rates in the nation at 23.7% as of June 2016.”  

With a comprehensive renovation now underway, OWB will initially hire approximately 200 people, growing to approximately 600 people as the facility ramps up production over a four-year period. 

“We are overjoyed to have the opportunity to re-fire the shuttered beef plant in Brawley and extremely grateful to Border Communities Capital for helping us realize our goal,” said Eric Brandt, OWB chief executive officer. “Bringing beef processing back to the Imperial Valley will have a tremendous positive economic impact on the City of Brawley and surrounding areas and we’re thrilled to be able to act in concert with Border Communities Capital and our other lenders to help reinvigorate the area.” 

“It is with great excitement that the City of Brawley welcomes One World Beef,” said Brawley Mayor Don Wharton. “The positive impact that the re-opening of the beef plant extends beyond the city limits. Job creation on this level does not happen often, therefore the significance of this industry returning to Brawley is immeasurable.”

Headquartered in San Diego, BCCC provides below market-rate financing to projects that create jobs, spur development, enhance infrastructure, and create services and opportunities for underserved communities and people located near the United States-Mexico border. Financing products offered include equity equivalent loans and a mixture of development, construction and permanent loans. 

BCCC’s Advisory Board member and longtime resident of Brawley, Tom DuBose added, “Imperial County’s largest agricultural commodity is cattle. We are grateful to the Brandt family for stepping up to restore this important job-generator to the community.”