Renovare Development

• $3.6M in funds approved. Washtenaw County ARPA Funds approved for Ypsilanti on Aug 3.
• Woman-owned business. Co-founders are experienced developers
• $88M pipeline. Six developments expected to close in 2022 and 2023
• Michigan made. Mixed-use projects in urban areas and rural main streets
• Social impact. Prioritize projects that are located in Opportunity Zones
• Terms. 10% amortizing debt. ~5 year term
• Payments. Accrued interest in year 1, with catch up payment in July 2023

We are a majority woman-owned, social impact real estate development company. We focus on transformational mixed-use projects in urban areas and rural main streets that meet community needs. And we prioritize projects that are located in Opportunity Zones.

We are committed to the successful completion of transformational mixed-use real estate development projects in urban neighborhoods and rural main streets. Our approach involves close collaboration with municipal partners on site selection and the assemblage of qualified team members with a goal to produce high quality products, on time and within budget. 

Our long-term experience includes private real estate, government roles and nonprofit community development. This varied experience provides us with the broad perspective necessary for the social impact projects we are attempting to develop. We maintain a broad network of municipal contacts and professional service providers that help us to access redevelopment opportunities throughout the State of Michigan.

Renovare Development LLC (the “Company” or “Renovare”) is based in Michigan and was launched in May 2019, with the goal of focusing on transformational projects in urban communities and rural Michigan main streets.

Renovare applies an approach to development that includes intense collaboration with municipal partners and strategic leveraging of local, state and federal incentives and funding programs to minimize long-term debt and support sustainable cash flow. Our approach includes a deep commitment to building quality teams, with a goal of completing projects on time and within budget. Our developments are planned to be inclusive and provide comprehensive solutions for affordable housing and economic development to local communities.

The founding Managing Partners of Renovare Development, Jill Ferrari and Shannon Morgan, have significant experience in real estate development, including brownfield redevelopment, market rate and affordable housing, neighborhood commercial development and ownership and asset management of Low Income Housing Tax Credit properties. With over fifty years of combined experience, our female-led team presents a perspective and approach to sustainable and equitable development that is driven by local community needs.

Renovare’s pipeline includes various project types and product mixes designed to provide consistent  cash flow for the organization and long-term net value in the real estate portfolio. Project types include mixed-use, affordable and workforce multifamily housing, attainable single-family housing and community-centric commercial uses ranging from $4 million to $19 million in total development costs. While there is no formal definition for “attainable” or “workforce” housing, some industry experts have applied this definition to housing that is priced for families between 80% and 120% of Area Median Income. Many communities have developed their own definition of “attainable” housing. We have defined “attainable” housing as housing where the housing cost and utilities make up no more than 30% of the gross household income for households earning up to 120% of the Area Median Income. Site plans and conceptuals have been developed for a planned immediate pipeline of five projects described in “Project Pipeline.”

The Company applies the following selection criteria when choosing development projects to pursue:

• Will the project provide comprehensive solutions to community housing and economic development needs?
• Can the community be engaged in the design of the project?
• Is the project consistent with an existing community plan? 
• Does the project include resilient and sustainable design features?
• Is the project design based on current data for demand and affordability? 

Key issues we focus on addressing:

• Workforce housing need. There is a demonstrated demand for attainable housing
• Housing costs too much.  It's difficult for working families to find affordable homes
• Job growth stalling. Expansion curtailed due to the lack of housing available for new employees
• Main streets are key. Main street amenities key to economic growth in many rural communitie

Jill Ferrari and Shannon Morgan co-founded Renovare and jointly manage the Company. Jill Ferrari is a licensed attorney with twenty-five years of real estate development and operations experience. Jill has extensive experience in forming complicated capital stacks that combine federal and local funding and incentives, with unique financing programs and conventional debt. As a former CEO of Michigan Community Resources and Shelborne Development, and a practicing attorney, Jill also brings extensive experience in operations.  Jill has served as Director of Community Development for Wayne County, MI and Vice President of Real Estate Acquisitions for Real Estate Interests Group, Inc. She has helped to finance over two hundred million in community development projects. Jill has received the following awards: 2021 Woman of Influence - GlobeSt Real Estate Magazine; 2017 Woman of Distinction - Commission on the Status of Women; and the 2016 - Melvin Simon Award Winner - International Council for. Shopping Centers (ICSC). She is the current Co-Chair of the Urban Land Institute (ULI) Michigan District Council and founder of ULI Michigan’s Women’s Leadership Initiative. She is a member of the ULI Michigan Small Scale Development Local Product Council and a member of the Women’s Development Collaborative.

Jill's projects inlcude REI Neon, The Village at Grand Traverse Commons, Spring Haven Communities, Northville Psychiatric Hospital and 
Island Lakes at Midtown. 

Shannon Morgan has completed thousands of single family and multi-family redevelopment projects throughout the United States on projects ranging from affordable senior, veteran, live-work-play, complex brownfield redevelopment, missing middle, neighborhood stabilization, urban neighborhood infill, new urbanism and more. She is an experienced LIHTC developer and owner, with multiple projects completed in Michigan. She has also specialized in building, rehabilitation, and development within urban areas, rural main streets and communities in numerous states throughout the country and on brownfield and transit-oriented projects; completing over 20,000 units of mixed income housing with a focus on projects that promote sustainability, urban revitalization and a sense of place. She was named the Richard Baron Affordable Housing Developer of the Year in 2018 by SmartGrowth America. 

Her projects include The Grandview Marquette, The Gateway, Garden Lofts and Woodward Place, Eton Street Station Mason Run,

Shannon serves on numerous boards and has received several honors, including 2018 “Affordable Housing Developer of the Year” – Locus/Smart Growth America; 2018 Detroit Crain’s, Spotlight on Women in Real Estate; Board member of the Michigan Community Development Association; Graduate of the Detroit Larson Center for Leadership; Graduate of the George Washington University Place Based Strategic Planning and Walkable Urban Development Program, Washington DC; Policy member of the National Steering Committee for Locus/Smart Growth America; Member of the Advisory Committee for Redevelopment Communities, Michigan Economic Development Corporation; Member of the Housing and Community Development Product Council, Advisory Committee for the Michigan Statewide Housing Plan, Michigan State Housing Authoring; ULI Michigan; Member of the Michigan Sense of Place Council and Co-Chair of the Women’s Leadership Initiative for ULI Michigan.

The company's history.

Renovare was formed in 2018 and officially launched in May of 2019 by Jill Ferrari and Shannon Morgan. The Company is a Michigan Limited Liability Company designated as a Partnership for Internal Revenue Service (IRS) purposes.

The Company began its operations with $420,000 in equity funding provided by Civitas, LLC, Partum, LLC and Veritas, LLC. This funding allowed the Company to identify their first six projects, secure team members, develop conceptual site plans and elevations, estimate hard costs with general contractor partners, and finalize pro formas. Since then, we have been actively seeking site control of various projects while completing financial modeling, conceptual designs and site plans. To date, six projects are under contract. Three of those projects are located in Opportunity Zones.

New investors Telosa, LLC, Citylife Communities, LLC, and Pierce Capital, LLC, purchased the previously held investor interest. This will provide the Company with broader access to technical resources, a stronger balance sheet and access to more project-based investors.

Each development project is expected to generate a developer fee, annual cash flow or sales proceeds. The amounts will vary, depending on the funding sources in the capital stack as well as the overall financing structure. Developer fees on projects are generally paid in installments. Typically, a percentage is paid at initial closing, a second installment is paid at the completion of construction, and then a final payment is made at stabilization. Consulting fees are expected to be made on a monthly basis. Fee-based development generally generates an upfront fee as well as a portion of the developer fee on each project.

We believe it is important to maintain a variety of income sources to ensure adequate cash flow over time. Returns on equity investments are expected to be paid in alignment with agreed upon terms as represented in each project’s pro forma.

Based on the cash flow needs of the company, it is optimal that the company seek the following project mix for its portfolio: 

• Low Income Housing Tax Credit (LIHTC) deals (either 4% or 9%). Typically  generate around $2 million in fees during construction and occupancy. May be critical for short term and annual cash flow and to provide significant value on the company’s balance sheets. 
• Attainable Single-Family Deals. Fees are paid during construction and sales generating consistent cash flow, intended to support ongoing monthly operational costs. 
• New Market Tax Credit (NMTC) Deals. While NMTC developer fees may be lower, long-term value can be created to provide future leverage for the Company. NMTC deals can position the Company as statewide partners with funding agencies, in turn generating opportunities for other funding.

The Company also receives a secondary source of revenue derived through limited real estate consulting services and development solutions offered to municipalities, property owners, developers, nonprofits and others, continuing to build relationships that will ultimately provide further real estate opportunities. Consulting services include site selection, land assemblage, master planning communities, brownfield redevelopment, main street programs, economic development programs, public private partnerships, government relations, federal funding and affordable housing. Development services for property owners that wish to redevelop properties and that meet the company’s mission and project criteria might also include packaging entitlements, financing, securing commercial tenants and representation at municipal meetings. Development fees are unique to each project, and are generally based on a percentage of total development costs. Fee structure usually includes up-front fees as well as a percentage of the developer fee on each project. 

Currently our company capitalization through equity investment is around $250,000. The funds raised through this offering will be used, in addition to this equity, for operations and pre-development expenses on the projects we are preparing for development. Over the period of five years net cash from operations is expected to grow from approximately $500,000 to $6,500,000. 

We plan to distribute interest payments each quarter, for interest earned on the previous quarter, and to return loans made at the end of five years.

You can download and review the company's projections here.

• Ypsilanti.  Planning Commission approval  received & Community Benefits process completed. Next step? We'll close on financing.
• Benton Harbor.  Low Income Tax Credit application will be ready to submit on July 15. Debt term sheet in hand for Phase A, with formal underwriting to begin.  Stay tuned!
• Bellaire Marketplact. Debt financing term sheet in hand from lender, wtih formal underwriting about to begin.
• Munising Marketplace. Debt financing term sheet in hand from lender, wtih formal underwriting about to begin.

The Company targets downtown corridors located within Opportunity Zones in rural areas and urban cities. Our goal is to work closely and collaboratively with the State of Michigan and local municipalities on sites they have determined to be redevelopment ready through the Redevelopment Ready Communities (RRC) Program. We prioritize sites where opportunities exist to leverage funds and other resources through local Main Streets, Downtown Development Authorities, Brownfield Redevelopment Authorities and other agencies and partners.

Treating municipal representatives as true partners by working in honest collaboration and bringing in quality team members will help us to bring in our developments on time and on budget.

Renovare Development currently focuses on the following product types for development: 

• Multi-story mixed-use - including retail, commercial and multifamily 
• Multifamily developments – to include mixed-income for-rent residential units
• Commercial
• Single Family residential

Here are more detailed descriptions of the pipeline projects:

City of Ypsilanti for sale single-family homes. This project, planned for a five-acre city-owned property near Depot Town, includes 46 units of for-sale single-family housing. Financing planned includes Brownfield Tax Increment Financing. 50% of the homes will be restricted to workforce housing for individuals and families at 80% to 120% Area Median Income.

Munising Marketplace. In partnership with the Alger County Land Bank, Renovare proposes the redevelopment of a large portion of a city block located in downtown Munising, home of the Pictured Rocks National Lakeshore. The three-story, new construction building is planned as mixed-income residential with ground floor commercial/retail space. The project is a comprehensive Workforce Development Initiative that incorporates housing, employment and a physical space within the development dedicated to local and statewide workforce development agencies, managed by MichiganWorks!

Pictured Rocks Event Center. Renovare is currently in preconstruction on the conversion of a former fire station and brownfield site in downtown Munising, Michigan, into the Pictured Rocks Event Center. The project includes a collaboration with local restaurateurs and Northern Michigan University’s Institute for Innovation. The 10,000 square foot building will be renovated to include private event space, casual dining, local artisan retail and outdoor seating and event space. 

Bellaire Marketplace. Through a partnership with Short’s Brewing Company, Renovare plans to develop a mixed-use building in downtown Bellaire to support the need for workforce housing and commercial space in this Northern Michigan town. As a lead employer for the region, Short’s Brewing Company is keenly aware of the need for Workforce Housing and is committed to being a part of the solution. This main street infill project will provide continued walkability and increased density for the area.

Project T - Benton Harbor. A multi-phase project on a five-acre city-owned property, this project is planned in partnership with the local Habitat for Humanity affiliate. Predevelopment funds and corporate sponsorship have been provided by Whirlpool Corporation. Project entitlement approvals are currently underway 

Project T Phase I. This phase includes a Low Income Housing Tax Credit deal, targeting Youth Aging Out of Foster Care. An application for 9% LIHTC is planned to be submitted in April 2022 for this 50-unit residential building.

Project T Phase II. This phase includes a three- story mixed use project with a community-centric ground floor commercial space and is expected to be financed through the New Market Tax Credit program.

The Company is engaged in a Regulation Crowdfunding (Reg CF) offering (the “Offering”) to raise money for Company operations and real estate pre-development costs to launch five projects. The Company, a real estate development company, focuses on transformational mixed-use projects in urban areas and rural main streets that meet community needs.

We are trying to raise a maximum of $250.000, but we will move forward and use investor funds if we are able to raise at least $100,000 (the “Target Amount”). If we have not raised at least the Target Amount by September 15, 2022, EST (the “Target Date”), we will terminate the Offering and return 100% of their money to anyone who has subscribed.

The minimum you can invest in the Offering is $500. Investments above $1,000 may be made in $500 increments (e.g., $1,500 or $2,000, but not $1,136). An investor may cancel his or her commitment up until 11:59 pm on September 13, 2022 (i.e., two days before the Target Date). If we have raised at least the Target Amount we might decide to accept the funds and admit investors to the Company before the Target Date; in that case we will notify you and give you the right to cancel.

After we accept the funds and admit investors to the Company, whether on the Target Date or before, we will continue the Offering until we have raised the maximum amount.

Investments under Reg CF are offered by NSSC Funding Portal, LLC, a licensed funding portal. You can download the disclosure packet here. This offering is registered with the SEC.

The Company will issue promissory notes for all investments made, promising to pay to each investor their investment, plus 10% interest. Repayments on each investment will also be made each year, based on a 10-year amortization term. 

Interest will accrue for the first year, through June 30, 2023, with a first payment that covers the first year of interest earned. Thereafter payment shall be made at the end of each quarter, for the previous quarter. At the end of five years any unreturned balance on investment made will be repaid along with any outstanding interest due. The Note Indenture includes detailed payment information along with a payment schedule.

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. 

In making an investment decision, Investors must rely on their own examination of the Companies and the terms of this offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of this offering, nor does it pass upon the accuracy or completeness of any offering document or literature related to this offering. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

There are numerous risks to consider when making an investment such as this one and financial projections are just that - projections. Returns are not guaranteed. Conditions that may affect your investment include unforeseen construction costs, changes in market conditions, and potential disasters that are not covered by insurance. You can download a more expansive list of potential risks here.

COVID19 Disclosure.

With unemployment reaching levels not seen since the Great Depression, by some estimates already 20% and rising, the Company has experienced a number of negative effects from the COVID-19 pandemic.

The effects of the pandemic on the hospitality and retail industry impacted our former equity investors. We were forced to raise replacement capital in 2021 in order to take them out. This delayed the execution of partnership agreements, access to predevelopment loans and our ability to execute financing agreements. We closed on investments with their new investors in December of 2021, positioning us to move forward quickly on all pipeline projects.

In addition, cost estimating on projects was slower than usual in 2020 and 2021 due to contractor staffing issues caused by the pandemic. Although we are working from incomplete information, these trends may continue depending on the trajectory of the virus and the ability to re-open the economy. We do not know how long the pandemic will last or how its effects will continue to ripple through the American economy. In a best-case scenario these issues will be short-term only. In a worst-case scenario scheduling issues will continue and supply-chain and construction issues might impact our projects over an extended period of time.