PNC's ability to provide innovative financing and expertise in harnessing federal resources is enabling Hilltop Development Associates, LLC, to develop a large-scale retail project in Baltimore City to serve as a catalyst for economic development.
The new 56,400 sq ft building will include 20,000 sq ft which has been leased to the Maryland Motor Vehicle Administration and 36,400 sq ft of retail space, adding jobs and increasing traffic for existing retail businesses.
Hilltop Development Associates, LLC, a group of investors formed to develop the project, turned to PNC for financing.
The project was made possible through a $7.3 million PNC Real Estate loan and $2.5 million in equity provided through the federal New Market Tax Credits (NMTC) program.
The New Market Tax Credit program, administered by the Community Development Financial Institutions Fund (under the U.S. Department of the Treasury) attracts private capital investments to assist in financing economic development initiatives in low-to-moderate income communities.
Purchasing tax credits requires specialized knowledge of the federal process and program compliance requirements. PNC is one of few local banks with a dedicated team and expertise to help clients secure tax credit allocation. This project is PNC's fifth NMTC deal in the region since entering the Greater Maryland market in 2008.