Oct. 31, 2017 by TREC Staff

Eyes on TREC Community Fund as Shark Tank Looms

On Thursday, TREC Community Fund is hosting the first-ever live TREC Shark Tank: GrowSouth event to promote real estate investment opportunities and encourage economic development in Southern Dallas. Modeled after the popular television show and hosted by WFAA reporter Demond Fernandez, TREC Shark Tank is presented by NexBank and features an opening conversation between Dallas Mavericks owner Mark Cuban and Dallas Mayor Mike Rawlings.

As we noted in a TREC Wire post Friday, NexBank has been a primary Community Fund investor since 2014, providing $110,000 in grants in the last 12 months as well as a $2 million line of credit for the Community Fund to support real estate projects to benefit low-and moderate-income families throughout all of Dallas.

We’d now like to spotlight the Community Fund and provide some insight into how it operates and the impact it had on our Shark Tank event.

What is TREC Community Fund?

TREC Community Fund provides loans and technical assistance to non-profit and for-profit organizations for real estate projects in need of flexible, creative capital. TREC Community Fund’s loans have bridged a capital campaign for an indigent clinic, funded renovation of low-income apartments, helped purchase land for a transit-oriented development and more.

TREC Community Fund is a Community Development Financial Institution (CDFI), certified by the U.S. Department of Treasury CDFI Fund.

What does it mean to be a CDFI?

CDFIs are mission-driven financial institutions that create economic opportunity in low-income communities by providing financial services to meet the needs of economically disadvantaged individuals in underserved communities.

As a certified CDFI, TREC Community Fund’s capacity to help our community is enhanced.

What financial products are offered?

  • Pre-development loans
  • Subordinate debt
  • Participation loans
  • Gap/bridge financing
  • Capital campaign bridge loans
  • Construction loans for community facilities, childcare and healthcare facilities

Who are the customers?

  • Small, community-based businesses
  • Affordable housing developers
  • Non-profit social service providers
  • Childcare providers
  • Healthcare facilities
  • Other nonprofit and for-profit developers who are developing in low to moderate income neighborhoods

How does TREC Community Fund’s lender profile differ from traditional lenders?

Our loans are inherently higher risk by conventional lending standards. Loans are made when there’s a lack of sufficient collateral, but also little repayment risk. We make loans in areas without access to traditional loans. These areas may lack comparable projects to support estimated property value or how the business would perform, especially in highly distressed neighborhoods such as West Dallas or Southern Dallas.

What current loans are in the works?

TREC Community Fund is currently working on a retail construction project in South Dallas/Fair Park neighborhood and land acquisition for affordable housing in West Dallas. These neighborhood-based ventures will bring new amenities and resources to meet the demand for quality housing and retail options. Thank you to the TREC members who have supported the underwriting and due diligence process on these opportunities.

What is the Community Fund’s role in TREC Shark Tank?

In addition to hosting the event, the Community Fund had a hands-on role in vetting the submitted project proposals and working alongside groups comprised of alumni members of TREC’s leadership development programs to assist our finalist developer teams in refining their pitches.

How can I get involved?

Offer your expertise to assist our partners with applying for a loan. Join the Development Services Listserv to learn about TREC Community Fund’s volunteer opportunities. Contact me, Maggie Parker, Community Fund Manager, with any questions.

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