Supporting the Revitalization of Downtown Lynchburg through CDFI Lending
September 2024 – VCDC's CDFI Lending Entity, VCDF, recently closed on a loan of $500,000 for the first phase of a mixed-use revitalization project in Lynchburg, VA, which will renovate 9 properties (6 existing buildings and 3 vacant lots) on Lynchburg’s downtown Fifth Street. This extensive revitalization project will help bring vibrancy and attraction back to historic Fifth Street and support Lynchburg’s Downtown 2024 Master Plan.
Fifth street, once known as the Lynchburg’s African American Business District, has experienced different phases of economic strength and decline in its long history. In the late 19th century, Fifth street served as a high-end residential area and the center for commerce and business for Lynchburg’s African American community. It housed theatres, drug stores, boutiques, grocery, barbershops, restaurants, cafes, and other businesses predominately owned and operated by African American entrepreneurs. However, by the mid 20th century and into the early years of this century, Fifth street experienced a significant decline in these vital centers of neighborhood life, partly due to desirable shopping centers moving into suburban areas and further away from downtown. Stores on Fifth street began closing, buildings were abandoned, and remaining businesses struggled in the declining market. Residents living in neighborhoods adjacent to Fifth street struggled financially as property values decreased.
Over the past 10-15 years, the City of Lynchburg and local community development entities have begun investing capital and resources back into the Fifth street corridor to bring vibrancy and economic prosperity to the area. One of these local investments comes from Fifth Street Enterprises LLC and Fifth Street Legacy LLC, whose owner recently acquired a block of fifth street comprising 12 properties. Through the first phase of this redevelopment project, the developer will renovate 6 existing buildings and 3 vacant lots for parking and accessibility. This renovation will bring approximately 16 new commercial units and 24 residential apartments to this block on Fifth street, driving engagement and business to this historic neighborhood.
In order to assist with project advancement, VCDF has provided a $500,000 re-financing loan with flexible terms to the Fifth Street mixed-use project. This loan will provide financing vital to the success of this revitalization project, serving as one small but important step in rejuvenating downtown Lynchburg and bringing more opportunity to residents. Other sources of financing that will help bring this project to life include federal and historic tax credits, city incentive funding, and local support.