The ProjectGinosko Development Company (Ginosko) and its affiliated development company Aslan Development LLC (Aslan, collectively with Ginosko, serves as the Ginosko Development Team), are leading forces in the Low-Income Housing Tax Credit (LIHTC) sector and modular manufacturing, respectively. Together, the Ginosko Development Team sought to address the pressing demand for affordable housing in Detroit, Michigan, and the broader upper Midwest amidst rising costs. Using an innovative approach of embracing modular multi-family housing to bring this vision to life, the Development Team acquired a 15-acre pad-ready site in Romulus, Michigan, where they constructed a state-of-the-art 105,000 square-foot manufacturing facility to be operated by Optimum Modular, LLC (Optimum Modular). The ImpactThe Ginosko Development Team strategically secured a site near Detroit’s Wayne County International Airport in Romulus to be operated by Optimum Modular. Situated in the Aerotropolis district and identified by the Romulus City Master Plan as a prime location for industrial redevelopment, this project has successfully generated 160 new permanent jobs in a region grappling with an unemployment rate of 16.4%, nearly twice the national average. These positions offer full-time employment with comprehensive benefits and pay that exceeds the living wage for Wayne County and the per capita income for low-income communities. The Optimum Modular facility operates an assembly line with 17 stations dedicated to producing modular housing units. Beyond the main production floor, the project features offices, research and development areas, workshops for various trades such as woodcutting, and a logistics hub for preparing modules for transport to their final installation sites. Partnerships for GrowthThe Ginosko Development Team is committed to collaborating with the cities of Romulus and Detroit to source its workforce locally and offer apprenticeships to untrained workers. The training programs cover traditional crafts, including:
Training programs are also offered for tech-forward skills like computer numerical control (CNC) machine operation, 3D modeling and animation design. To achieve these ambitious training objectives, the Ginosko Development Team has partnered with Focus: HOPE, a renowned non-profit organization focusing on workforce development in Detroit. Community FinancingWith a total project cost of $22.4 million, Ginosko secured essential financing to advance its mission of providing affordable housing in the upper Midwest. A source and direct loan was obtained from Local Initiatives Support Collaboration (LISC). At the same time, New Markets Tax Credit (NMTC) allocations totaling $15 million were contributed by Grow America and FirstPathway Community Development, with allocations of $7 million and $8 million, respectively. Additionally, more than $2 million in cash contributions were directly infused into Optimum Modular, the qualified active low-income community business (QALICB). This strategic financial framework enabled the project to address the region's critical demand for affordable housing. Our AnalysisEmbarking on a first-of-its-kind project for the sponsor, consultants at Cherry Bekaert served as the deal doula in more ways than one. From sourcing allocation and working with a first-time investor to holding a closing team together after a major financing partner pulled out 24 hours before closing, we served as the trusted partner until the financing was delivered and the project was fully funded.
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TOTAL DEVELOPMENT COST: NMTC ALLOCATION: COMMUNITY DEVELOPMENT FirstPathway Community Development, LLC ($8,000,000) FINANCING COMPLETE: PROJECT SPONSOR: NMTC INVESTOR: ADDRESS: CENSUS TRACT: COMMUNITY OUTCOMES: LOW-INCOME COMMUNITY: |
