Pinnacle at Jackson Place
Address
190 Capital St. Jackson, MS 39201
Census Tract
28049002700
Poverty Rate
53.5%
Median Income
36.1%
Total Project Cost
$48,472,009
NMTC Financing
$29,500,000
Project Completion
Federal NMTC Financing
Overview
The Pinnacle at Jackson Place is a 9-story, 192,000 sq ft office building in the central business district of Jackson, MS. Pinnacle is the foundation of the renovation of the entire block. The block within the borders of Lamar, Capitol, Farish and Amite Streets are being transformed into a major urban center known as Jackson Place. Other new developments that will join Pinnacle and the existing 14-story, 220,000 square foot One Jackson Place building as part of Jackson Place include:
- Customer Parking at Jackson Place – 1,732 space, seven-level facility will be renovated
- The Shops at Jackson Place will encompass new and existing retail customers on the ground level of the parking facility
- The Residences at Jackson Place will provide downtown residential spaces
- The Gardens at Jackson Place will be a specially-landscaped courtyard between The Pinnacle and Customer Parking
Climate-controlled corridors and walking spaces will connect The Pinnacle to the adjacent One Jackson Place building, customer parking, shops and residential properties. The building received a LEED Gold Certification.
Pinnacle is considered a Class A building in the local market. Tenants who have already signed leases include two prominent local law firms, a regional bank and a REIT with its headquarters in Jackson, MS.
Project Financing
The total cost of the building is $48,472,000. The project received two interest-only loans totaling $29.5 million from Urban Development Fund. The loans feature numerous advantageous terms for the project, including a lower-than-standard interest rate, lower-than-standard origination fees, debt with equity features, subordinated debt, and higher-than-standard loan-to-value.
Due to market conditions in the area after Hurricane Katrina, the cost to build the Pinnacle is approximately $15 million higher than the appraised value of the completed project. For this reason, the sponsors were unable to obtain conventional financing to fund the project. Using NMTCs, UDF was able to help overcome the obstacles this project faced and help to revitalize the devastated downtown area of Jackson.
Community Impact
The property is located in census tract 28049002700. This tract has a poverty rate of 53.5%, and the median family income in this tract is only 36.1% of the area-wide median family income. The unemployment rate in the area is 3.64 times the national average. It is located in the Gulf Opportunity Zone, an SBA HubZone, and a federally designated Medically Underserved Area, as well as being designated an Economic Development Hotzone and a Housing Hotzone by the CDFI Fund.
The project created 120 temporary construction jobs. The completed building created or retained 505 full-time jobs for area residents. The retention of jobs in the CBD will help to maintain profitability at other support businesses in the area and alleviate the flight of companies from the CBD area. Additionally, the requirements surrounding the buildings construction will directly employee minority-owned businesses as dictated by an agreement with the Jackson Redevelopment Authority, from whom the land for the project was purchased.
The project is currently working with the Winter Institute for Racial Reconciliation, based in Oxford, MS, to provide an office space in the building which will provide for meeting facilities open for use by the public. Founded in 1999, the William Winter Institute for Racial Reconciliation builds more inclusive communities by promoting diversity and citizenship, and by supporting projects that help communities solve local challenges.
