The renovation of a formerly blighted and boarded-up grocery store may seem like a humble undertaking, but backers of the project see it as a key component to uplifting the distressed downtown of Brockton, Mass.
The makeover of Vicente's Tropical Market is part of a $12 million project by BlueHub Capital, a non-profit that focuses on community development. The centerpiece of the project was the creation of a community health center that has partnered with the store to promote healthy diets.
“We provided part of the financing so the owners of the grocery store could expand the floor space dramatically,” said Susan Rivers, BlueHub Capital”s chief communications officer.
BlueHub Capital helps communities by providing financing to build brick-and-mortar facilities that range from affordable housing to schools and other facilities that are then used by service organizations for the betterment of disadvantaged communities. “Our mission is to build healthy communities where low-income people live and work,” said Elyse Cherry, CEO of BlueHub Capital.
The non-profit community development organization, formerly known as Boston Community Capital, provided $12 million in pre-development and subordinate financing for the Brocktoon project, which included the construction of the Brockton Neighborhood Health Center right next door to the grocery store. The center provides nutrition counseling and distributes coupons to patients to buy healthy food at a discount from Vicente’s.
“We see it as very relevant that the health center and the food store are actually helping their community live healthier lives,” said Rivers. “It is key to our mission.”
Tackling diabetes is one of the goals of the project. About 10.4 percent of Brockton residents suffer from the disease, as do 12.4 percent of patients who visit the health center, compared with a state average of 7.5 percent.
The Brockston project is one of many that BlueHub Capital has funded as part of its commitment to ushering in a business model based on sustainable finance principles. Since it started more than 30 years ago, it has invested more than $1.4 billion in projects across the nation.
“We track progress of the projects to confirm that they are keeping to the mission focus,” Cherry said. “We also go back after projects are complete to measure impact.”
Unlike some other impact investments, BlueHub Capital's projects are focused on fixed income. “There has been a tendency in the impact investing world to overlook fixed income and focus on equity or venture capital,” Rivers said. “We are essentially fixed-income people who invest in a note. You might think of it sort of like a CD.”