Bank also Commits $20 Million with Fallbrook
Multifamily as Partner
Fifth Third Bank, National Association, announced today that
Chicago-based Decennial Group will serve as a partner to help it
invest $30 million in Qualified Opportunity Zones as part of its
$100 million commitment announced last Friday. The funds will be
used to develop projects in low-income urban and rural communities
within the Bank’s footprint. The $100 million investment by Fifth
Third Bank represents one of the largest made by an institution
with a social impact investment strategy in Opportunity Zones.
“We are thrilled to partner with Decennial to work on Qualified
Opportunity Zones in Chicago and throughout Illinois and the
Midwest,” said Mitchell Feiger, regional chairman and CEO of Fifth
Third Bank, Chicago. “With this agreement in place, Decennial Group
is working to immediately identify qualified development
opportunities in Chicago and other Midwest markets. The group’s
goal is to deploy Fifth Third’s capital and accelerate market
activity in order to create high-quality, affordable housing. Fifth
Third expects to make a substantial commitment to Illinois with
this program.”
Decennial Group is a vertically integrated investment management
and development platform that will manage the assets for a minimum
of 10 years, consistent with the requirements of investments made
in Qualified Opportunity Zone locations.
“Decennial Group was created to lead pioneering investments in
underserved communities,” said Bob Clark, Decennial Managing
Partner and Clayco CEO. “This partnership with Fifth Third will
allow us to make a significant impact in Qualified Opportunity
Zones in Chicago, the state of Illinois, and throughout the
Midwest. We intend to bring the full impact of Decennial’s
financial, operational, and industry expertise to create projects
that help transform underinvested neighborhoods into affordable,
vibrant, and thriving communities.”
Mayor Lori E. Lightfoot said, “We thank Fifth Third and
Decennial Group for partnering with the City to create inclusive
growth and committing to bring measurable, lasting investment to
areas of Chicago with the greatest need. This will further our
common goal of ensuring that INVEST South/West community corridors
receive strategic investments, enhancing the quality of life and
economic growth to benefit all our neighbors.”
Designed to spur long-term private sector investment into
economic development and job creation in economically distressed
communities, Opportunity Zones were established as part of the 2017
Tax Cuts and Jobs Act to promote investment and development in a
significant number of qualified low-income census tracts.
Investment projects will need to satisfy the following Fifth Third
social impact criteria:
- Located in a qualified Opportunity Zone
- Public welfare investment eligible
- Project will be developed by an experienced, credit-worthy
sponsor
- Located in an MSA where Fifth Third has determined community
need under the CRA
- Actionable before the end of June 2020
- Expected to generate a positive economic return
- Offers opportunities to expand relationships with the bank
The $100 million investment will be used in three key investment
categories: affordable housing; workforce housing and other
community priorities for multifamily development; and certain
non-residential or mixed-use real estate serving a particular
community need, as well as projects that contribute to local job
and business growth.
“We are honored to further expand our working relationship with
Fifth Third’s Community Development group. Fifth Third continues to
be our most valued partner and their commitment to improving lives
in the communities they serve sets an example for other banks to
follow,” said Brandt Blanken, president of Fallbrook Multifamily
Investments. Fallbrook Multifamily also was named as a partner,
with a $20 million commitment by the Bank to the Fallbrook
Opportunity Zone Fund II.
On Friday, January 24, Fifth Third announced it would partner
with National Equity Fund, an affiliate of the Local Initiatives
Support Corporation (LISC), with a $25 million commitment and
Raymond James with a $25 million commitment.
“We are very excited about today’s announcement and what it
means for Chicago and Illinois,” said Meghan Harte, executive
director of Chicago LISC. “LISC is helping Fifth Third break new
ground on Opportunity Zones throughout the country with the
assistance of National Equity Fund, and on a local level in
Chicago, Decennial Group is a strong partner who can bring
important projects to the city, state, and Midwest as a whole. We
applaud Fifth Third’s novel approach that taps the experience of
four different partners, with a focus on achieving impact with
every investment.”
Fifth Third Opportunity Zone investment projects that are
currently being considered include the redevelopment of affordable
and workforce housing with a minimum of 51% of the units are
targeted to families with income at or below 80% of the area median
income; forming a partnership with a housing authority organization
to bring a grocery store to a food desert; investment in
neighborhoods that are part of larger strategic growth initiatives
in various cities; community centers for public housing residents
and creating a commercial kitchen for use by small business
entrepreneurs.
The first projects from the Fifth Third Opportunity Zone
investments will be announced during the second half of 2020.
About Fifth Third
Bancorp
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio and the indirect parent company
of Fifth Third Bank, National Association, a federally chartered
institution. As of December 31, 2019, Fifth Third had $169 billion
in assets and operated 1,149 full-service banking centers and 2,481
ATMs with Fifth Third branding in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and
North Carolina. In total, Fifth Third provides its customers with
access to approximately 53,000 fee-free ATMs across the United
States. Fifth Third operates four main businesses: Commercial
Banking, Branch Banking, Consumer Lending and Wealth & Asset
Management. Fifth Third is among the largest money managers in the
Midwest and, as of December 31, 2019, had $413 billion in assets
under care, of which it managed $49 billion for individuals,
corporations and not-for-profit organizations through its Trust and
Registered Investment Advisory businesses. Investor information and
press releases can be viewed at www.53.com. Fifth Third’s common
stock is traded on the Nasdaq® Global Select Market under the
symbol “FITB.” Fifth Third Bank was established in 1858. Deposit
and Credit products are offered by Fifth Third Bank, National
Association. Member FDIC.
About Decennial Group
Decennial Group is a vertically integrated investment management
and development platform comprised of a unique team of
best-in-class developers, real estate and energy investors,
builders, and regulatory experts. Among the first bespoke
investment platforms in the opportunity zone marketplace, Decennial
Group is focused on scalable, long-term investments that can
revitalize neighborhoods throughout the country, with an emphasis
on the American Heartland. For more information, please visit the
Decennial Group at www.decennialgroup.com.
About Fallbrook
Multifamily
Fallbrook Multifamily Investments, LLC is a real estate
investment firm focusing nationwide on the development and
preservation of affordable multifamily properties. Fallbrook’s
mission is to develop, acquire, provide and preserve quality
affordable housing while supplying exceptional management to
partners and tenants as well as delivering stable returns to
investors.
The majority of Fallbrook’s investment properties are supported
by federal and state programs such as the Low Income Housing Tax
Credit (LIHTC) and HUD’s project based Section 8 program, which
provide much needed housing to qualifying tenants, operate at
traditionally high occupancy rates, provide reliable income, and
deliver predictable revenue growth. For more information, please
visit www.fallbrookmultifamily.com
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200127005474/en/
Larry Magnesen (Media Relations) Larry.Magnesen@53.com |
312-704-5564
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345
Sarah Hamilton for Decennial Group | 312-664-0153
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