2024 Winter Issue of Urban Land - 61

Build relationships, ask questions, and ask for
mentors... If you want to be a developer, recognize that
you have to build the skills and the box of credibility
and capital.
- COLLETTE ENGLISH DIXON, MARSHALL BENNETT INSTITUTE OF
REAL ESTATE AT ROOSEVELT UNIVERSITY
have the access to much more affordable and
reasonable money, " he says.
But Tillman maintains it's important to note
that not all CDFIs are created equal, and some
are more conservative than banks.
Bank of America, in partnership with
Enterprise Community Partners, is investing
$60 million-$30 million in loans and $30
million in equity financing-to support
Enterprise's Equitable Path Forward, a fiveyear
initiative to help facilitate racial equality
in housing. The investment is anticipated
to increase access to capital and career
opportunities for Black developers.
Financial institutions are not alone in
looking to make a difference; religious
organizations also recognize the need. Pastor
Matthew Watley of Kingdom Fellowship
AME Church in Calverton, Maryland, believes
that, because Black churches are the largest
owners of property in Black communities
nationwide, the church should have a hand in
creating generational wealth and improving
communities of color.
Watley teaches his congregation how to
acquire commercial real estate. It's not just
talk. According to his representatives, he has
acquired $27 million in commercial property
for the church, which also owns and operates
a 125,000-square-foot (11,600 sq m) tower
that it leases primarily to the U.S. Food and
Drug Administration, among other businesses.
Words of advice
Tillman suggests that Black and brown
developers maintain another source of income
until they amass enough units or development
projects that produce a significant cash flow
and build operational capital into all the
project budgets. " Focus on developing in
communities that are MBE [minority business
enterprise] developer-friendly, where the
city and/or state understands [it has] a role
to play in advancing this issue, " he says,
adding that as you prioritize working in these
communities, ensure that they have taken that
role seriously and put major staff resources
and capital resources behind their statements
that this outcome is a priority.
" Build relationships, ask questions, and
ask for mentors, " says Collins, who adds that
it's okay to have advisers who don't look like
you, but one who speaks to the deal and
understands the marketplace adds credence.
Being a developer is the riskiest part of the
real estate spectrum, with the most money at
risk, longest time frame, and the most issues,
says English Dixon, adding, " If you want to
be a developer, recognize that you have to
build the skills and the box of credibility and
capital. "
It's also a numbers game: the more you
have to show, the better your odds. Rachal
says that once you have five deals under
your belt, it gets easier to talk to financial
sources, because you've already established a
relationship with them.
Developers and financial institutions agree
that building relationships is key. La Franchi
suggests looking up active equity funds
and calling them. " Also reach out to other
developers of the same scale and get their
advice, ask how they raised equity on their
first deal, " she says.
When it comes to banks and investors,
Mosley says they should recognize as both an
opportunity and a responsibility that sound
developments are created by developers of
color who are going to have an impact on
communities. UL
CARISA CHAPPELL is a digital content editor with S&P Global
Ratings, based in Chicago.
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2024 Winter Issue of Urban Land

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