$10M
Equity Bridge Loan
105,000 SF
Modular Home Manufacturing Facility
$22M
Potal Project Costs
As cities search for realistic solutions for affordable housing, Optimum Modular shines as a star model for high-quality modular buildings. Located in a highly-distressed census tract in Romulus, Michigan, the company will be able to produce standardized modules at an offsite factory, then connect them on-site at a final destination. This approach has been shown to result in higher-quality building, shorter building time frame, more predictable costs, and fewer environmental impacts. Owned by Ginosko Development Company, Optimum Modular will facilitate the development of a 105,000 SF modular home manufacturing facility thanks to a $10MM equity bridge loan from the Black Economic Development Fund.
About the Project
Optimum Modular is manufactured housing producer and will be creating standardized modules of an apartment building in a new 105,000 SF factory located in Romulus, Michigan. These modules are then connected on-site at a final destination.
About the Sponsor
The sponsor for this project is a Black-owned and -led multifamily residential housing development, construction, ownership, and management organization, Ginosko Development Company. Ginosko was founded in 2002 by Amin Irving and John Hayes and is a member of the Michigan Minority Contractors association.
Deal Overview
The Black Economic Development Fund facilitated a $10mm equity bridge loan to the Sponsor for the development of a 105,000 SF modular home manufacturing facility. The project includes the acquisition, construction, and operations of the facility, with total project costs at $22MM.
Impact Highlights
Bringing job opportunities and economic activity to a highly distressed (16.4% unemployment) census tract and Qualified Opportunity Zone
Modular housing can decrease the cost of housing development, resulting in lower sales price and/or rental cost for a low-income neighborhood
Creation of jobs prioritizing the hiring of disadvantaged workers and Southeast Michigan residents
Time-saving building delivery bringing reduced costs and fewer environmental impacts
*All information as of October 2022
*All information above as of March 2023.
Project Gallery
The investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LISC Fund Management, which is a wholly-owned subsidiary of LISC. LISC Fund Management is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser with the SEC does not imply any level of skill or training. Please visit the SEC’s website at www.adviserinfo.sec.gov to see LISC Fund Management’s Form ADV, which contains important disclosures, including further disclosures about material conflicts of interest, risks, and limitations associated with LISC Fund Management.