Barings Announces $17.4M Financing For Varick on 7th - A Mixed-Income Affordable Housing Development

CHARLOTTE, N.C., Feb. 28, 2022 /PRNewswire/ -- Barings, one of the world's leading investment managers, announced today that it will provide $17.4M in permanent financing for Varick on 7^th, a mixed-income multifamily housing development in Charlotte, North Carolina. The 1.3-acre development, situated in the First Ward neighborhood, will provide 105 housing units to affordable and market rate tenants. 

"Our financing commitment to this project underscores Barings' view that mixed-income multifamily developments are essential to helping communities thrive holistically," said Daron Tubian, Head of Affordable Housing Investments and Managing Director at Barings. "The work that's being carried out through the partnership of Laurel Street and Little Rock CDC will ultimately produce much-needed additional housing units in a market that can really benefit from sustainable affordable housing."   

Upon completion, the development will be a 5-story building with a mix of 1, 2 and 3 bedroom apartments for affordable and market rate residents. It will include a lounge, café, fitness and business centers, community outdoor living space, bike storage space and an innovative, shared parking arrangement with Little Rock AME Zion Church in order to reduce the overall footprint of the development.

"Varick on 7th is an important project for many reasons. Not only will it provide much needed transit-oriented affordable housing in Uptown Charlotte, it marks the first project receiving investment capital from two LISC managed funds totaling $21 million -- the Charlotte Housing Opportunity Investment Fund and the Black Economic Development Fund," said Ralphine Caldwell, Executive Director of LISC Charlotte. "Alongside Barings, this collective of mission-oriented capital demonstrates the power we can have when working together to build more inclusive communities of opportunity."

"Laurel Street and Little Rock CDC would not have been able to develop Varick on 7th as truly inclusive and sustainable housing without innovative financing partners in Barings, LISC, and the City of Charlotte," said Dionne Nelson, President and CEO of Laurel Street. "When complete, Varick on 7th will be one of the most inclusive and diverse communities in Uptown Charlotte with access to employment, transit, recreation, and other amenities."

"Little Rock CDC is excited to be partnering with Laurel Street, Barings, LISC, and the City of Charlotte to bring an inclusive community for people of all ages and incomes to the First Ward neighborhood," said Rev. Dr. Dwayne A. Walker, Senior Pastor at Little Rock AME Zion Church and Board Chair and Founder of Little Rock CDC. "This new community is the culmination of a long-term dream to combine the resources of the Little Rock AME Zion Church with land owned by the City of Charlotte to further the mission of both the CDC and the Church to serve the families and individuals of First Ward and the surrounding neighborhoods."

"Many households are spending the majority of their annual income for housing and transportation, leaving little income for other critical living expenses," said Shawn Heath, Assistant to the City Manager and Interim Director of Housing & Neighborhood Services at the City of Charlotte. "The Varick on 7^th development will connect these families to transportation, employment, and other retail, allowing people of all income levels to live, work and play in the same neighborhood."

"The financing solutions for mixed-income housing developments can be challenging, but through the innovation and dedication of Barings, LISC Charlotte, the City of Charlotte, Laurel Street and Little Rock CDC, we were able to close on the financing structure of this signature project," said Barings' Tubian.  

Consistent with Barings' commitment to sustainability, Varick on 7^th features a quality and responsible design through a focus on reducing parking and encouraging transit, reuse of a brownfields site, and sustainable building practices through National Green Building Standard certification.

About Barings

Barings is a $391+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*Assets under management as of December 31, 2021

Contact

Cheryl Krauss, Barings, 980-417-5858, [email protected]

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SOURCE Barings

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