Memphis Medical District Collaborative, Pathway Lending, banks and private foundations partner to launch capital fund to finance transformative residential and mixed-use real estate development
MEMPHIS (July 19, 2021) – Pathway Lending and the Memphis Medical District Collaborative (MMDC), in partnership with First Horizon, Regions Bank, Truist, The Kresge Foundation and The Hyde Family Foundation, today announced the launch of the Memphis Medical District Investment Fund, a $30 million capital fund dedicated to support development of residential and mixed-use projects in the Memphis Medical District.
Pathway Lending, a regional Community Development Financial Institutional (CDFI), will underwrite supported projects and deploy the fund, which it capitalized with $10 million contributions each from First Horizon, Regions Bank and Truist Bank and a guarantee up to $6 million from Kresge and additional operating support from The Hyde Foundation.
“Pathway Lending has been committed for more than 20 years to working with our banking partners and community stakeholders to bring capital to underserved communities. Elevating neighborhoods and empowering the people and businesses who belong to them is central to our work,” said Pathway President and CEO Clint Gwin. “The creation of the Memphis Medical District Investment Fund will bring catalytic capital to the Medical District to facilitate redevelopment and new development advancing the district’s growth and long-term sustainability. We are proud the community and our partners have entrusted us with this capital to further the vision for a thriving district community for all citizens to share.”
The Memphis Medical District is home to several large hospital systems, as well as a number of medical education providers. The area hosts over 30,000 employees and students and more than 10,000 residents. Yet decades of disinvestment in the area’s neighborhoods have resulted in high poverty rates and a lack of adequate housing and commercial options. Though the area has seen marked investment in recent years, market studies indicate the District can absorb 1,000 more residential units and nearly 170,000 square feet of commercial and retail space. The fund will provide developers looking to address the current gap with an additional capital source of flexible financing in a rising market.
“People increasingly see the value of the Medical District as a place for investment, opportunity and to become a part of a growing community,” said Rory Thomas, president of MMDC. “The Memphis Medical District Investment Fund is a significant tool that will help developers access capital and carry forward the momentum in the Medical District.”
The Memphis Medical District Investment Fund deepens the Kresge Foundation’s investment in Memphis and its partnership with the Memphis Medical District Collaborative. Through its American Cities Program and Social Investment Practice, both of which helped to shape the fund, Kresge aims to promote inclusive and effective community and economic development.
“We know from our experience in Detroit that once you accelerate inclusive development in a neighborhood, it builds upon itself,” said Aaron Seybert, managing director of Kresge’s Social Investment Practice. “Through this collaboration and this unique financial structure, we think we can see 15 or 20 years of that kind of mission-oriented development happen in the next five to seven.”
The Hyde Foundation’s contribution to the new fund continues its ongoing support for MMDC, where the foundation has remained a major stakeholder since helping drive its formation in 2016.
“The Medical District has been a long-standing neighborhood of focus for the Hyde Family Foundation, and we are incredibly excited to support this effort,” said Teresa Sloyan, president of the Hyde Family Foundation. “Our partners in this initiative are serving as agents of change, and we are proud to uplift and support their work, which will greatly accelerate residential and commercial development to meet the demand for a vibrant, inclusive community.”
“This strategic partnership and investment serves as a model for community development across our community and specifically in the Medical District,” said Bryan Jordan, President and CEO at First Horizon. “This fund will provide vital capital to help ensure members of our communities have greater access to financing.”
Regions Community Development Corporation, a wholly owned subsidiary of Regions Bank, will facilitate Regions $10 million contribution.
“The Medical District is a vital part of Memphis and the Mid-South, and this collaboration is focused on leveraging the resources of community partners to make a deeply meaningful impact,” said David May, market executive for Regions Bank in Memphis. “The area features a unique combination of world-class health care facilities, leading educational institutions and longtime residents and neighbors who are committed to uplifting the community. Today’s announcement reflects the culmination of two years of planning to support the district’s continued transformation and further develop its tremendous potential. Regions is proud to significantly invest in the future of the district.”
“At Truist, our purpose is to inspire and build better lives and communities, and our partnership with Pathway Lending to accelerate the revitalization of the Memphis Medical District exemplifies our purpose,” said Johnny Moore, Tennessee region president for Truist. “We have a real opportunity to create the momentum needed to attract the significant investments required to return the Memphis Medical District into a vibrant business and residential district, and I am thankful we are a part of this effort.”
First Horizon Corp. (NYSE: FHN), with $87.5 billion in assets as of March 31, 2021, is a leading regional financial services company, dedicated to strengthening the lives of our associates, clients, shareholders, and communities. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, mortgage, and title insurance services. First Horizon has been recognized as one of the nation’s best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.
The Hyde Family Foundation identifies, creates and supports initiatives capable of producing innovative, positive change for Memphis through four key impact areas: High-Quality Education, Vibrant Spaces and Communities, Thriving Arts and Culture and Engaged Leadership and Civic Pride. The Foundation is committed to building a thriving, progressive Memphis through active, engaged philanthropy. For more information, visit www.hydefoundation.org.
The Kresge Foundation was founded in 1924 to promote human progress. Today, Kresge fulfills that mission by building and strengthening pathways to opportunity for low-income people in America’s cities, seeking to dismantle structural and systemic barriers to equality and justice. Using a full array of grant, loan, and other investment tools, Kresge invests more than $160 million annually to foster economic and social change. For more information visit kresge.org.
The Memphis Medical District Collaborative is a community development organization working with anchor institutions to strengthen the connections, communities, and campuses in the Memphis Medical District so they are more vibrant, prosperous, and equitable. Learn more at mdcollaborative.org.
About Pathway Lending
Founded in 1999 and based in Nashville, Pathway Lending is a community development financial institution (CDFI) certified by the U.S. Department of the Treasury. It has grown to become a major lending institution in the Southeast, propelling meaningful economic growth in communities across the region. In 2020, Pathway Lending made more than $46.1 million in loans and delivered 15,790 hours of technical assistance and education. Get to know our mission and the stories of the entrepreneurs and communities we serve at PathwayLending.org.
Regions Financial Corporation (NYSE:RF), with $153 billion in assets, is a member of the S&P 500 Index and is one of the nation’s largest full-service providers of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates more than 1,300 banking offices and approximately 2,000 ATMs. Regions Bank is an Equal Housing Lender and Member FDIC. Additional information about Regions and its full line of products and services can be found at www.regions.com.
Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $522 billion as of June 30, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.