mHUB uses NMTC financing to acquire and rehabilitate historic building in Chicago for new headquarters
The Baker Tilly Capital team helped mHUB secure $36.6 million of New Markets Tax Credit (NMTC) financing to acquire and rehabilitate the historic 240 N Ashland Blvd clock-tower building in Chicago.
Client need
mHUB is a not-for-profit incubator for hardtech manufacturing (the application of engineering and science involving the combination of hardware and software to solve a problem), supporting breakthrough products in the fields of medical technology (medtech), climate and energy technology (energytech), and the industrial internet of things.
Launched in 2017, mHUB sought to establish their first permanent headquarters in the Chicago area. The expansion would allow mHUB to increase resources, continue removing barriers for hardtech founders and manufacturers, and grow programming focused on recruiting, supporting, developing and launching women and minority-owned businesses.
As a nonprofit, mHUB has limitations when accessing capital. With limited cash flow and debt service capacity, available capital is predominately reinvested in programming, equipment or recruiting new businesses who can benefit from the services offered – making it difficult to fund the expansion of the new headquarters.
Baker Tilly Capital solution
The Baker Tilly Capital team helped mHUB secure $36.6 million of New Markets Tax Credit (NMTC) financing to acquire and rehabilitate the historic 240 N Ashland Blvd clock-tower building in Chicago. The project maximized public funding with the support of $17.55 million of Tax Increment Financing (TIF), $9.5 million from the State of Illinois and $13 million of tax-exempt bond financing.
mHUB’s investment was done out of a commitment to grow mHUB’s presence while acting as an anchor for an industrial district designated for manufacturing-supported development. The NMTC capital filled a $9 million financing gap and allowed the project to proceed, affording mHUB the ability to:
- Anchor the historic Industrial Corridor, providing an ecosystem for physical product growth while cultivating a community of collaboration and connectivity between innovators, entrepreneurs and manufacturers.
- Move adjacent to the Ashland Avenue Pink and Green Chicago Transit Authority train lines, better connecting mHUB to lower income entrepreneurs throughout the south and southwest sides.
- Expand their track record of providing start-up support, prototyping, equipment, early-stage funding and business leadership skills for small businesses and tech ventures to launch sustainably – resulting in business creation, revenue, investments, intellectual property and jobs.
Results
With our NMTC solutions, mHUB is able to:
- Create over 13,000 jobs and launch over 500 businesses with a goal of supporting over 50% WMBEs.
- Anchor the Kinzie Industrial Corridor – a Planned Manufacturing District and TIF District.
- Institute a Catalyze Fund supporting funding and programming for over 300 women and minority innovators.
For more information on this topic, or to learn how Baker Tilly’s NMTC specialists can help advance your next community improvement project, contact our team.
