Initiative Capital has announced a $2.5 million bridge loan to the Scrap Exchange to acquire the majority of the Shoppes at Lakewood shopping center in Durham. This high impact community development loan will have transformative impact in the Tuscaloosa-Lakewood neighborhood.
The culmination of months of planning and years of visioning, The Scrap Exchange purchase includes 82,000 square feet and 10 acres of land. “Our plans include the creation of a Reuse Arts District, and expansion of the principles of creative reuse we embody at The Scrap Exchange,” notes Executive Director Ann Woodward. “Right away the new space will include an expansion of our community welding shop. Eventual development plans include an adventure playground, an artist studio, and affordable housing units, among other developments.”
“This project was a natural fit for a loan from Initiative Capital, our lending arm,” says Tara Kenchen, President and CEO of the Initiative. “ The Scrap Exchange’s track record for creating jobs through repurposing waste is just the kind of innovative economic development we are looking to support. We are pleased to provide a six month bridge loan to The Scrap Exchange to help secure the property.”
Kenchen and Woodward and their respective boards recognized the promising economic opportunity in the redevelopment of this underutilized shopping center. Several large out-of-town developers made competing offers, and the two wanted to ensure that development remained in local hands and properly addressed the needs of the surrounding neighborhoods.
Woodward serves on the Southwest Central Durham Quality of Life Committee, a Duke University/neighborhood initiative to cultivate and engage neighborhood leadership in the seven neighborhoods around Duke, an area which includes the shopping center. “We wanted to promote economic development from within the local community,” notes Woodward. “We will collaborate with the community to develop and execute our plans for the space. “
The Scrap Exchange has already secured pre-lease agreements with several prospective tenants, and is finalizing the details for permanent financing. For more information, contact Ann Woodward at director@scrapexchange.org or Tara Kenchen at tkenchen@ncinitiative.org.