Avenues 2015 issue 4 web

VOLUME 22

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ISSUE 4 2015

INSIGHT TO SUCCESSFUL REBRANDING STRATEGIES

NEW CONSTRUCTION RENOVATIONS HISTORIC REHAB MULTI-FAMILY COMMERCIAL MIXED USE

FEATURES

1118 South Washington Avenue Lansing, Michigan 48910 cinnaire.com | 844-4CINNAIRE

BRAND FORWARD.......................................................................... 6

by Tiffany Dowling

WHAT’S IN A NAME?..................................................................... 10

by Jim Logue and Jim Peffley

Mark S. McDaniel President and CEO o 517 364 8900 c 517 242 0447 f 517 574 7715 capmac@cinnaire.com

THE BRANDING ADVENTURE.....................................................12

by Mary McDaniel, CMP

1118 South Washington Avenue Lansing, Michigan 48910 cinnaire.com | 844-4CINNAIRE

12

DEPARTMENTS

CEO’s MESSAGE.............................................................................. 5

by Mark McDaniel

EVENTS & HAPPENINGS..............................................................16

12 ADVERTISER INDEX..................................................................... 22

group

TOP OF MIND!

I like that place.

Sounds familiar...

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CEO’s MESSAGE

GOVERNING BOARD Wendell Johns, Chair Former SVP, Fannie Mae Michael J. Taylor, Secretary/Treasurer PNC Bank Catherine A. Cawthon Fifth Third CDC Derrick K. Collins Chicago State University Christine R. Hobbs Former Director, Freddie Mac Multifamily William C. Perkins Wisconsin Partnership for Housing Development, Inc. Robert Rossiter AIG Federal Saving Bank James W. Stretz George K. Baum & Company Donald F. Tucker Don Tucker Consulting Paul J. Weaver Former SVP and Controller, FHLBI

CORPORATE OFFICERS Mark S. McDaniel, President & CEO Christopher C. Cox, CFO James L. Logue III, COO Kevin Crawley, Executive Vice President Jennifer A. Everhart, Executive Vice President Rick Laber, Executive Vice President Marge Novak, Executive Vice President Jim Peffley, Executive Vice President

LOCATIONS Lansing Headquarters 1118 S. Washington Avenue Lansing, MI 48910 Phone 517.482.8555 Detroit Office 2111 Woodward Avenue, Suite 600 Detroit, MI 48201 Phone 313.841.3751 Illinois Office 225 West Washington, Suite 1350 C Chicago, IL 60606 Phone 708.781.9603 Indianapolis Office 320 N. Meridian, Suite 516 Indianapolis, IN 46204 Phone 317.423.8880 Wisconsin Office 2 E. Mifflin Street, Suite 403 Madison, WI 53703 Phone 608.234.5291 Delaware Office 100 W. 10th Street, Suite 302 Wilmington, DE 19801

BY MARK McDANIEL PRESIDENT & CEO CINNAIRE

It’s very difficult to give up something that you’ve grown with, nurtured and have created with it cherished memories. I can understand the emotions a woman goes thru when deciding to change her family name when she gets married or losing a product you’ve used for years that has been discontinued.

Change is hard for everyone, but is necessary to grow and experience things that can be even more fulfilling. Change should never be taken lightly. Changing can be complicated and fraught with emotion.

Two years ago at our board retreat, after researching and assimilating our findings, we presented what the future of Great Lakes Capital Fund could be and how we can sustain our strengths and growth. Our research was pretty sobering. With the continued shrinking of federal and state resources, those limited resources will be allocated to experienced, highly impactful, financially strong and diversified community development organizations. There are thousands of organizations that are dedicated to some form of community and economic development. Many are very narrow in what they offer, have made limited impact, and have limited financial resources. This is not to say they are not run properly at all. They may only offer a single resource in a limited market or don’t have the financial capacity to grow beyond that.

Research indicates that there will be significant consolidation in the community and economic development world of organizations. Those that seem to be in the strongest position to thrive and help those who have limitations are Community Development Finance Institutions that have the strong diverse attributes I have mentioned earlier. The board directed staff to undertake a fiveyear strategy to continue to build our operating model around our CDFI work to be in the position of strength for the future.

Question then was how do we move forward? We did a brand assessment and realized our biggest limiting factor was our brand. There was an obvious geographic limitation related to Great Lakes. Our recent acquisition/merger with Delaware Community Investment Corporation brought that issue into immediate focus. The label Capital Fund narrowly defined us into the world of equity CONTINUED ON PAGE 9 5

FEATURE

BRAND FORWARD

BY TIFFANY DOWLING PRESIDENT AND CEO, M3 GROUP

Target, Apple, Starbucks; these are all popular brands that have become household names. But how did they get there? Creating and building a brand is challenging, and takes a significant amount of time and effort, but is extremely rewarding in the end. As a full-service branding agency, M3 Group knows a thing or two about brand culture.

M3 Group is a full-service branding and publications agency located in downtown Lansing, Michigan. M3 Group is

the publisher of three magazines: Capital Area Women’s LifeStyle Magazine, Greater Lansing Business Monthly and ing Magazine. With more than 20 fulltime employees, M3 Group has over a decade of experience cultivating, nurturing and communicating brands.

Depending on whom you ask, branding can mean many different things to different people. So what is branding, exactly? It is not just the logo, a tagline or your ad; your brand is actually all of these things tied together to create one single, cohesive identity for your organization. Your brand is your promise, your actions and the words you

People Have Been Talking group

BRAND FORWARD

“I am confident with M3 Group’s ability to get a project done on time, on budget and with the right touch that makes their work fun and continues to deliver its intended goal — to connect to our customers, residents and business owners in a fun, positive and educational way.”

Chad A Gamble, P.E. Director of Public Service Lansing, MI

See For Yourself M3 GRO UP BRA N D F O R WAR D

517.203.3333 | www.m3group.biz

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share with your clients or customers.

It’s the first thought potential stakeholders have when they hear your name or when they see a visual representation of your organization.

Branding involves choosing and using symbols to reflect what you value as a company. It also enables people to understand who you are and what you do without having to be in direct communication with you. Your brand is your story and your reputation. It’s a mental, subconscious note of who your organization is and hopefully what you want it to be.

Even if your company is small, you need to consider your brand for many reasons. The first, and possibly most important reason, is that a brand creates value for your organization. It tells people why they should care about you and what you do as opposed to everyone else in your category. Brands also build trust; if your brand has a strong reputation for treating clients well, people will remember that and associate it with your organization. When you have a solid brand that connects with people and they know you, it is easier to make a sale or get a new client. (Diagram A message: The higher the level of brand equity is in direct correlation to how easy it is to convert new business in time and resources) We live in a brand-saturated world. Every company and organization is trying to cut through the clutter to be heard.

Your brand can speak and connect to the public. Brands have needed to shift over the last few years. People are doing business with organizations they can trust. Gaining a level of trust in your brand gives your organization value. If your clients don’t trust you, they won’t come back to you or even CINNAIRE

Brand Awareness

group

TOP OF MIND!

1

Empower your team to represent your brand. This helps create the human touch that makes all brands more likeable.

I like that place.

2

Sounds familiar...

Who?

$

$$

$$$

$$$$

Call to Action Campaign Cost try you in the first place. Building this trust means that we need to be transparent, ask our stakeholders what they need and engage them in a real way.

Finally, because there is a new level of transparency through social media, everything you do influences how people think of you and your organization. Any move made can be associated with your brand, so make sure you’re making decisions that accurately reflect your brand for your organization.

A great way to figure out how to make the right decisions is through research.

The more you know about your brand and how it’s being perceived, the better. Both qualitative and quantitative research will give you the insights you need to create a brand foundation that is both meaningful and powerful.

Research can include focus groups, online surveys, stakeholder interviews and target audience polls, all designed to give you maximum insight into your client’s thinking process. Brand research should always be evaluated thoroughly and as unbiased as possible in order to discover the most acAVENUES TO AFFORDABILITY

Making your brand relatable in today’s marketplace is important for success. There are many ways to accomplish this, but here are five that you should consider:

curate perceptions or “aha” moments of your brand.

Once you’ve found out how your brand is being perceived, it’s important to evaluate where your brand is currently. Usually, these two descriptions are not the same. Ask yourself, who are you now? Who do you want to be?

And most importantly, what is the gap between what internal people think of the brand (leadership and employees) and external audiences (stakeholder groups)? The best way to figure out where the brand is currently is to discuss these questions internally. Be prepared to ask the tough questions; if you’re not feeling uncomfortable during the discussion, you’re probably not there yet. Leadership within your organization can often give the best insight as to where the brand should be as opposed to where it currently is. Once you’ve established where your brand currently stands and where it needs to go, it’s time to take the research gathered about your brand’s perceptions and analyze where the disconnect is between internal and external audiences.

Own the flaws. Every person and organization has them. People forgive when we own the issue. Don’t delete it from social media if a problem has occurred. Explain the issue and apologize if necessary. It will make a difference to stakeholders and make some more brand loyal.

3

Have fun. There is nothing wrong with having a little fun with your brand. You don’t have to be slapstick, but creating a sense of humor goes a long way to making your brand relatable.

4

Become a resource. Everyone likes to learn a little something from time to time. If stakeholders see you trying to help them understand the industry or navigate an issue, they will continue to check back.

5

Engage directly. Because stakeholders want to trust the organizations they are working with, it is important to create opportunities for them to connect. Whether you hold a small gathering for clients or take the top customers to a ball game, it’s important to put people out there to represent the brand effectively.

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DON’T FORGET THIS Through the implementation phase of the branding process, it is easy to get caught up in some of the more obvious tactical elements like changing the website look and feel or updating the trade show display.

Don’t forget to put a proactive public relations component together. Public relations activities can help solidify the new brand faster than any other medium you take on.

The three public relations areas you should definitely include in your integrated plan are: DEVELOP PITCH SHEETS. Reporters are always looking for sources in their article development process.

Make it easy on them and let them know the areas you’re an expert in so you can get a call when they are writing about your topic. They can’t call if they don’t know who you are.

PROACTIVE INTERVIEWS. You don’t have to wait on a reporter to get a call. You can proactively pitch an idea to them. Remember, it will be taken more seriously if you have a news or feature hook that is relevant to the audience. Also understand that reporters don’t want you to waste their time, so it’s important to reach out to reporters that would really be interested in covering your story.

BLOGGING AND ARTICLE DEVELOPMENT. Write the story yourself.

Then work on getting it into the areas you want to reach. Make sure you use it in your own newsletters, websites and eblasts, but you can also reach out to industry publications, association newsletters and other news sources to run your important information.

Public relations activities are great because you get to form the message yourself. This helps when solidifying your brand because research shows that when people read it in print, they are more apt to believe it.

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FEATURE After you’ve established where the disconnect is, you can start developing a new brand and new messaging to move your organization in the right direction. Brand messaging works together with your brand’s logo to represent the company as a whole and makes sure the brand is unified. New messaging can include a wide variety of things, from new website content, new print materials, and an updated tagline to mission and vision statements and new elevator pitches.

All of these things are designed with one thing in mind: to efficiently and accurately convey your brand to the public. The new brand should be easily discernable and make sense with the research found and the internal goals expressed by company leadership.

When there is a happy combination of the two, you have found your new brand and the direction your organization should be headed.

The next step is often deemed the most exciting one: implementation. After all the research is completed and new brand messaging is created and agreed upon, it’s time to put this new brand into action. Implementation includes a wide variety of things, from updating business cards to websites to company print materials. Whatever the company uses to promote its brand, new messaging must be involved to reflect the newly updated brand. This part of the process is also seemingly the most rewarding, as you get to actually see the results. Once everything is in print and visible, it’s time for what many people think is a crucial phase in the rebrand process: the launch.

Launching a new brand is something that must happen from the inside out.

In order for a brand to be truly successful, an organization must make sure its brand ambassadors – their employees – are all on the same page. Leadership in the organization must buy into the brand and adopt it fully, showing

employees that they are completely onboard with the new brand and are confident in its representation of the company. Once all internal employees are comfortable with the new brand messaging, it’s time to take the brand to the public.

Publicly launching a new brand is exciting and also nerve-wracking. It’s important to convey your new brand direction in the right way to your audience, to make sure public perceptions are on par with internal goals and views. The most crucial part is to plan, plan, plan; don’t stop when you’re done, stop when your brand is a name your stakeholders know and value.

Your public launch should include a timeline from start to finish: what you are expecting in the beginning and how you want your brand to be perceived in the future. Integrating your plan into your overall brand is just as important. One note does not make a song; in order for your new brand to truly thrive, you must fully integrate your brand throughout your entire organization and industry.

Finally, the biggest key to a successful new brand comes down to one thing: consistency. You must be consistent in every single part of the communication process. Remember, your brand is a reflection of everything that you do.

The messages that you are sending to your audience through social media, print ads, billboards and even your logo, must all say the same thing. To sum up, your brand is as successful as you want to make it.

Understand who you are, where your organization is headed and ultimately, where you want to be. Find a happy balance between your internal goals and audience perceptions, and keep your new brand message as consistent as possible to keep your organization’s value and client’s trust. Create an authentic brand and earn more business.

CINNAIRE

CEO’s MESSAGE

CONTINUED FROM PAGE 5

syndication, which is a core business model for us. However, we are also a lender and investor for not only housing development, but also commercial real estate and economic development. This, included with our title services business and nonprofit development work, told us we had many limitations to our brand for growth and a strong future.

We realized the first step we needed to take to reposition the organization for the future was to go through a rebranding process. It entailed a yearlong process with third party consultants, the M3 Group and Alternative Solutions LLC. It was extensive and tedious work.

This is where I realized how emotional and deep seeded the change was going to be. It isn’t just a name change, new logo, colors, and fonts. It entailed

a hard long assessment to understand what we really do and how staff can consistently describe what we are to people. Brand is CONSISTANCY! This edition of Avenues will address what branding is and the process to achieve brand consistency. The value of brand is huge. Think about McDonalds, Coca Cola, Red Cross and IBM. Habitat for Humanity values their brand at $2 billion. Amazing!

We looked at what our current brand was and how is it was thought of in the market. When you hear the name or the message what does it say?

We are excited for our future and are confident we will be recognized as one of the to CDFI’s in the country. The new name is a newly created word that truly captures who we are and what we do. Cinnaire will resonate for years

to come. What does our new name mean? Cinn = to lead; aire = caring, loving way. Celtic words pulled from our research. We asked people what they think of when they think of our organization and the work we do. The full list is in the sidebar on page 14.

We all miss the “CapFund” label, but it was time to grow and leave a legacy that is sustainable for the future. Cinnaire will continue to advance communities through being a full service financial partner that supports community and economic development initiatives through creative loans, investments and best in class services. We match exceptional community investment opportunities with community-focused investors.

We at Cinnaire look forward to a bright future with you, our partners, to continue to make a difference.

Karl L. Gotting Kenneth W. Beall Michael G. Oliva Michael H. Rhodes Jeffrey L . Green Kevin J. Roragen Richard W. Pennings Ted S. Rozeboom Tracey L . Lackman Michael G. Stefanko

OVER 45 YEARS OF EXPERIENCE IN AFFORDABLE HOUSING

Warren H. Krueger, III

Representing developers and syndicators before the

Elizabeth Husa Briggs

Michigan State Housing Development Authority, and numerous

Dominic R. Rios

other state financing agencies, U.S. Department of Housing and Urban Development, USDA Rural Housing and municipalities,

124 W. Allegan, Suite 700 Lansing, Michigan 48933 Phone 517.482.2400 www.loomislaw.com

AVENUES TO AFFORDABILITY

and with private lenders, including projects receiving LIHTC, historic and new markets tax credits.

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COVER STORY

WHAT’S IN A

BY JIM LOGUE AND JIM PEFFLEY CINNAIRE

Before changing our name to Cinnaire, the entire management team, along with our governing board members, spent considerable time and effort in deciding whether to change our name.

Throughout the process we consulted with our full staff and partners.

A company name can describe what the company does, it can refer to its owner, or it may simply be a name that serves to convey some meaning. Ultimately, a name serves as a platform for building and conveying a brand. We decided to change our name for two primary reasons.

The first was an immediate concern.

When the Delaware Community Investment Corporation (DCIC) joined forces with Great Lakes Capital Fund, we understood that the “Great Lakes” name did not adequately reflect a company that has made a strong commitment to several states on the east coast. Using the Great Lakes name on the east coast threatened to convey that Delaware, Pennsylvania, New Jersey and Maryland were secondary markets for the company, which certainly is not true. So, for that reason alone, we knew we needed to change the company’s name sooner rather than later.

There was a second equally important reason to move forward with a rebranding process. The two of us made a presentation to our Board of Direc10

tors in the spring of 2014 titled “The Brave New World of Community Development Finance.” Details regarding that presentation are provided below, but the takeaway from the presentation was that we are likely to see continuing consolidation in the Community Development Finance industry, and those entities that thrive in the future will need to act proactively today in positioning their organizations to lead in the future. The leadership and board both agreed that our organization will need to evolve in order to be a leader in the years ahead, and this would require a change to our name in the future. We decided that it would be best for Great Lakes Capital Fund to change its name, and create its “new” brand, in such a way that the need to change our name again in the future would be largely eliminated. Elsewhere in this magazine we describe the meaning of the name Cinnaire, and how we arrived at that name, but changing our name to Cinnaire provides us with a name and brand that will serve us well into the future.

We fully expect that the Cinnaire that will exist 10 years from now will be substantially different than the Cinnaire that exists at the end of 2015. We cannot predict precisely how we will be different, but we can provide an overview of the issues we are addressing today in order to prepare Cinnaire to enhance its market leadership in the future. These points were all covered in our presentation to the Board of Di-

rectors in the spring of 2014.

We need to think like an enterprise, not just a group of related companies.

Cinnaire is already a diversified community development finance organization, but we need to maximize the integration of our various businesses to optimize our level of efficiency and maximize the value we bring to our customers and investors.

Cinnaire needs to think and act more like a CDFI. We have had our CDFI designation since the mid 2000’s, but we have not been in the mainstream of the CDFI industry. The vast majority of our financing activities are in the affordable multifamily industry, centering around LIHTC equity investments and associated lending opportunities. Our other business lines do fall within the typical CDFI industry boundaries (NMTC, targeted development, some community facility financing), but it a smaller share of our work. We also have not utilized the funding resources most CDFIs have built their organizations around. We are beginning a focused effort to build our level of engagement and activity within the CDFI industry.

Build our organizational infrastructure to access civic capital. Most CDFIs, both large and small, have devoted considerable energy to accessing grant capital from governments and foundations, and deploying that capital to expand the organization’s mission impact. We have not accessed this imCINNAIRE

portant source of capital, but we are building that capability.

Continue to invest in human capital and organizational culture. Cinnaire has built a great team, with a healthy and dynamic culture. We are highly focused on recruiting individuals who can perform at an exceptional level, and will thrive in our collaborative and entrepreneurial culture. This is not a new priority; but it must remain a top priority for our leadership team if we are to grow and lead in the future. This involves not just recruiting and training, but effective succession planning, maintaining mission/vision alignment and work/life balance.

Build our core competencies. Cinnaire has a number of notable strengths that we consider to be top tier. Our track record of raising and deploying capital is impressive, and the performance of our book of business is excellent. We have a team with technical capabilities that any for profit entity would envy and struggle to replicate. We will not take these capabilities for granted; rather, we will continue to build out these capabilities.

Continually focus on our competitive advantages. These advantages include but are not limited to: excellent execution on the transaction level; proven track record of providing our investors with quality investment opportunities; one stop shop for debt and equity over the life of a multifamily development; strong local relationships and a commitment to reinvest in the markets we serve. We will maintain these advantages and seek to add to the list.

Optimize our branding and visibility.

Cinnaire is well known in the markets it serves, but we are ramping up our capacity to communicate the impact we are having in the markets we serve.

“I AM IMMENSELY PROUD TO HAVE SERVED ON BOTH THE BOARD OF DIRECTORS (MSHDA) THAT CREATED THE PREDECESSOR OF CINNAIRE 22 YEARS AGO, AND THE BOARD OF DIRECTORS (CINNAIRE) THAT HAS REBRANDED THE COMPANY BECAUSE OF ITS SUCCESS IN THE DOZEN STATES WHOSE AFFORDABLE HOUSING NEEDS ARE BEING ADDRESSED BY CINNAIRE. FROM ITS INCEPTION TO OVER A BILLION DOLLARS IN INVESTMENTS, CINNAIRE HAS DEMONSTRATED THAT ITS FUTURE IS UNLIMITED.” — DON TUCKER, DON TUCKER CONSULTING to new business partnerships/alliances; be engaged with strategic thinkers and individuals who will have a voice in shaping the future of community development finance; seek a direct role in shaping the future of the community development marketplace.

Organizations that thrive are those that effectively adapt to maximize op-

portunities in times of change. We are convinced that our industry is in the midst of considerable change, and we are acting proactively to take advantage of that change as opposed to being forced to react from a position of weakness. Changing our name to Cinnaire provides us with a flexible “platform” on which we can continually refine our brand.

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FEATURE

BRANDING

BY MARY McDANIEL, CMP PRESIDENT, ALTERNATIVE SOLUTIONS LLC

ADVENTURE The branding process is nothing to take lightly and the staff and board of Great Lakes Capital Fund (GLCF) took it very seriously. There were many steps the organization went through as they worked to peel back the onion to reveal who they really were, how the organization is perceived internally and externally, and how that perception fit or didn’t fit into where the organization is heading.

In order to re-brand properly, it was important for the organization to engage in a consulting company that had expertise in this area. GLCF had already been working with the M3 Group and knew of their reputation in successfully taking organizations through the branding process. The benefit of contracting with them was the fact that they had been doing work with GLCF

for a couple years and had a pretty good understanding of what the organization did and where it was heading.

As noted, branding is a process. The board, staff, investors, and partners participate in focus groups. The groups were asked a series of questions to determine the current perceptions such as the organizations visual branding, competitors, company overview, mission/vision/goals, and industry trends.

Once all of the findings were tabulated, they were reviewed with some very astounding results by the board and executive staff. Probably one of the most significant findings was the fact that not all employees were really aware of what the organization did or how to articulate it to individuals outside of the organization. As one would expect,

“I THINK THE NEW NAME IS ABSOLUTELY PERFECT BECAUSE WE HAVE EXPANDED GEOGRAPHICALLY, WE’VE EXPANDED THE SERVICES THAT WE OFFER AND THIS NEW NAME HAS ENCOMPASSED WHO WE ALWAYS HAVE BEEN AND WHAT WE ALWAYS WILL BE. CINN MEANS TO MOVING FORWARD AND PROGRESSING AND IARE MEANS LOVING, CARING, HELPFUL AND THAT IS EXACTLY WHO AND WHAT THIS ORGANIZATION ALWAYS HAS BEEN AND ALWAYS WILL BE.” — MARY MANUAL, ASSET MANAGER

THE DRAWING BOARD

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CINNAIRE

some of the other findings then fell in line with that same significant problem.

Interviews were conducted with current and past customers to gather additional data. M3 also did online research, conducted phone interviews and conducted opinion leader interviews to better assess positioning, competition and other related areas.

M3 then presented the leadership team with the summary of findings from all of the research conducted including general perceptions, positive attributes, areas of development and many other areas.

“BECOMING CINNAIRE WAS ABOUT RECOGNIZING AND RESPONDING TO OPPORTUNITY. IN THE LAST TWO DECADES RECOGNIZING OPPORTUNITY AND BEING INNOVATIVE HAS BEEN WHAT HAS MADE US SO SUCCESSFUL. WE’VE BEEN A LEADER IN PROVIDING AFFORDABLE HOUSING AND A LEADER IN COMMUNITY DEVELOPMENT. I DON’T THINK WE GET HERE WITHOUT BEING INNOVATIVE. FOR US TO CONTINUE TO BE INNOVATIVE WE NEED TO GROW AND FOR US TO GROW, WE NEED TO EMBRACE THAT IDENTITY OF BEING A LEADER IN THE FIELD OF COMMUNITY DEVELOPMENT AND NOW THAT IDENTITY IS CINNAIRE” — JOSH GHENA, ASSET MANAGER

In the end, it became very clear to the consultant, leadership team and board members that changing the name of Great Lakes Capital Fund was imperative to the continued growth and expansion of the organization. The name needed to more clearly reflect whom

Mark S. McDaniel President and CEO o 517 364 8900 c 517 242 0447 f 517 574 7715 capmac@cinnaire.com 1118 South Washington Avenue Lansing, Michigan 48910 cinnaire.com | 844-4CINNAIRE

1118 South Washington Avenue Lansing, Michigan 48910 cinnaire.com | 844-4CINNAIRE

AVENUES TO AFFORDABILITY

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BRANDING DESCRIPTORS (Key words to utilize in print and electronic materials.)

Caring • Loyal • Conservative Leader • Steady • Advanced Honest • Trusted • Valuable Knowledgeable • Experienced Progressive • Full-service Integrity • Creative • Experts 15-SECOND ELEVATOR PITCH Cinnaire is a full-service financial partner that supports community and economic development initiatives through creative loans, investments and best-in-class services. We match exceptional community investment opportunities with community-focused investors.

VISION STATEMENT Cinnaire will support and enhance community stabilization and economic development by providing our partners with creative financial resources, expertise and best-in-class services.

MISSION STATEMENT Cinnaire is a full-service community development financial partner that supports community stabilization and economic development by developing and nurturing partnerships with investors and mission–focused organizations.

We provide creative loans, investments, and best-in-class services to partners.

POSITION STATEMENT Cinnaire provides solutions and support to partners through a dedicated full-service approach.

Our progressive approach and loyal, experienced and knowledgeable staff create opportunities and provide access to funding and resources that advance community and economic development efforts. Building upon our exceptional track record, our responsible financial investment strategies, lending options and value-added services enable investors to advance business and community endeavors.

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FEATURE “NEW NAME IS UNIQUE, OUTSIDE OF THE BOX, ITS EXCITING, ITS FRESH BUT IT IS ALSO A WORD THAT NOBODY HAS EVER HEARD BEFORE. THIS PRESENTS A CHALLENGE. WE NEED TO LARGELY DEFINE THAT BRAND AND VALUE OF THE BRAND BASED ON THE ACTIONS WE TAKE INTERNALLY. BY HOW WELL WE EXECUTE, HOW WELL WE SERVE OUR PARTNERS AND INVESTORS. BUT AS I THINK ABOUT THE HIGH CALIBER TEAM WE HAVE ASSEMBLED, AND THE PASSION AND DEDICATION THAT THEY BRING ON A DAILY BASIS TO THIS ORGANIZATION, I THINK THE FUTURE OF CINNAIRE LOOKS VERY BRIGHT.” — BRETT OUMEDIAN, CONTROLLER the organization currently is, but more importantly the name needed to have longevity to meet the future needs of the organization.

The next phase took all of the information gleaned from the research phase and put together several proposed names for the organization to develop the brand. After several passes and the

Uber car experience Mark discussed in his letter, the name Cinnaire was born.

They also provided the leadership team with a list of brand descriptors, a mission statement, vision statement, positioning statement and 15-second elevator pitch. The marketing team, Alternative Solutions, LLC, then worked to craft the statements to more closely

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CINNAIRE

reflect the programs and services that Cinnaire currently provides. With the results, Alternative Solutions LLC, developed the new logo, colors, marketing pieces, and advertising campaigns.

Once all pieces were finalized it was time to have the Grand Announcement to the staff. GLCF/Cinnaire made it an enjoyable afternoon for the staff and concluded the evening with a celebration progressive dinner in downtown Lansing.

Staff was provided with all the tools to learn the brand and memorize the 15-second elevator pitch. This included a competition amongst the staff with creative video presentations of the elevator pitch. The winner received a $500 gift certificate. Memorizing this pitch has become a requirement of all staff and has been incorporated into the hiring process at Cinnaire. Each staff member will be presented with a branding guide they must refer to in order to maintain all the design concepts created through the process.

All marketing materials were updated to reflect the new look, logo and messaging. The legal staff worked on the name changes for the different companies, staff updated all building signs and related items. The website is under construction and new campaigns are being developed for 2016.

Cinnaire had a grand announcement press conference and reception at its headquarters and the other offices held various events to unveil and celebrate the new brand and name. Press releases were sent out and word got out quickly of the new name.

Over the next year, Cinnaire will continue to market the new look, name and brand with great excitement for the future of the organization.

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517.321.3331

Grand Rapids

Detroit

616.285.8857

248.336.9988

800.313.2966 www.pmenv.com 15

EVENTS & HAPPENINGS

NEW HIRES & PROMOTIONS A HUGHLETT KIRBY, VICE PRESIDENT, BUSINESS DEVELOPMENT Hughlett joined our Delaware office in October. In her role as Vice President, Business Development, Hughlett works to expand our presence on the east coast, as well as marketing the products and services Cinnaire provides. Hughlett assists in developing our pipeline of real estate investments in Delaware and surrounding states.

ED POTAS, MANAGER, BUSINESS DEVELOPMENT Ed joined our Detroit office in October. In his role as Manager, Business Development, Ed is responsible for project management and development coordination for our pipeline of real estate development opportunities that are impactful in the community. Ed has a passion for fulfilling our goal of building and preserving quality housing and transforming communities.

KATIE VONDRA, ASSET MANAGER Katie returned to Cinnaire in the Lansing office in November. In her role as asset manager, Katie is responsible for overseeing a portfolio of real estate debt and equity investments. Katie works directly with owners and management companies to ensure the financial success of Cinnaire investments.

LUAN NGUYEN, ASSISTANT ASSET MANAGER Lorem ipsum dolor sit amet, suscipit conclusionemque an eum, facete probatus vis te. Soleat adipiscing pri et, enim clita et pri. Et nostrum volutpat pro. Menandri invenire appellantur.

BRIAN FEENEY, FINANCIAL ANALYST IN THE ASSET MANAGEMENT DEPARTMENT Brian joined our Lansing staff in November. In his role as financial analyst in the asset management department, Brian provides support to the asset managers in overseeing our portfolio of real estate investments.

DAVID MIDDLETON, PART TIME IT SPECIALIST David joined our Lansing staff in November. In his role as IT specialist, David is responsible for network support and structure, as well as endpoint maintenance and updating. David also works with external technical resources to implement processes and resolve technical issues.

16

CINNAIRE

CINNAIRE EQUITY TRANSACTION CLOSINGS HOPE’S LANDING L.P. Auburn, IN Senior Housing | New Construction | 48 units TDC: $7.7M | Cinnaire Equity: $6.1M BOND COUNTY HOMES LIMITED PARTNERSHIP Greenville, IL Family Housing | New Construction | 40 units TDC: $10.6M | Cinnaire Equity: $8.5M WILLOW HAVEN II Linden, MI Family/Specials Needs Housing | New Construction | 20 units TDC: $4.5M | Cinnaire Equity: $3.7M BOND 2 L.P. Elizabethtown, Parksburg & Lancaster, PA Family & Senior Housing | Acquisition Rehab | 137 units TDC: $17M | Cinnaire Equity: $4.4M

WESLEY MANOR Frankfort, IN Senior Housing | New construction & Rehab | 50 units TDC: $7.6M | Cinnaire Equity: $6.2M

VILLAGE PINES OF MONROE Monroe, MI Family Housing | Acquisition Rehab | 190 units TDC: $15M | Cinnaire Equity: $9.9M

THE RIVERS II Oshkosh, WI Senior Housing | New Construction | 40 units TDC: $5.9M | Cinnaire Equity: $3.4M

SHOE FACTORY LOFTS Milwaukee, WI Family Housing | Historic Rehab | 55 units TDC: $11.7M | Cinnaire Equity: $7.3M

MERCANTILE LOFTS Milwaukee, WI Family Housing | Mixed use, Commercial and Multifamily Historic Rehab | 36 units TDC: $7.4M | Cinnaire Equity: $1M

MARSH POINTE APARTMENTS Haslett, MI Senior Housing | Acquisition Rehab | 108 units TDC: $9.6M | Cinnaire Equity: $2.4M

VILLAGES OF HILLSIDE Harbor Springs, MI Senior Housing | New Construction | 32 units TDC: $7.1M | Cinnaire Equity: $3.8M

CHANDLER HEIGHTS II Seaford, DE Family Housing | Acquisition Rehab | 28 units TDC: $7.1M | Cinnaire Equity: $3.8M

MILL POND MANOR Brighton, MI Family Housing | Acquisition Rehab | 58 units TDC: $6M | Cinnaire Equity: $3.8M BEACON HILL Grand Rapids, MI Family/Special Needs Housing | New Construction | 48 units TDC: $9.4M | Cinnaire Equity: $2.4M

AVENUES TO AFFORDABILITY

17

EVENTS & HAPPENINGS

CINNAIRE RECEIVES AFFORDABLE HOUSING PROGRAM GRANTS FROM THE FEDERAL HOME LOAN BANK OF CHICAGO Cinnaire was awarded over $2.6 million last week from the Federal Home Loan Bank of Chicago (FHLBC) Affordable Housing Program (AHP). These awards will allow Cinnaire to assist in the acquisition, rehabilitation, new construction and adaptive reuse of over 200 housing units. These units will serve low income, disabled and historically homeless residents in Michigan, Wisconsin and Illinois.

“This is our first round of AHP participation and we are ecstatic to have received awards for more than half of the AHP subsidy we requested. As we continue to grow and expand our expertise in the CDFI Industry, we look forward to our work with the FHLBC and thank them for allowing us to bring this much needed investment into the communities we serve.”

Since 1989, the FHLBC has awarded more than $398 million in competitive AHP grants. Nonprofit groups, forprofit developers and public entities

“Cinnaire is thrilled to receive these awards from the FHLBC,” said Mark McDaniel, Cinnaire President and CEO.

OVER 20 YEARS EXPERIENCE IN ALL PHASES OF AFFORDABLE HOUSING • Audits • Cost Certifications Mt. Pleasant & Midland Michigan

• LP Tax Returns • Mortgage Certifications

Phone 989.772.4673 | Fax 989.772.6371 | Email jbourland@blystonebailey.com

Specializing in the

Management

of Affordable Housing We make a difference.

TAMC has been developing affordable apartment communities for more than 40 years. We bring the management skills used to manage our own investments to others, offering quality management services in fee management. We have the proven experience and ability to improve property performance while enhancing the quality of life for your residents. www.associated-management.com

Let us make a difference for you, contact us today.

33067 Schoolcraft Road, Livonia, Michigan 48150 P 734.402.6402 F 734.402.6408

18

Since 1970

apply for the competitive AHP grants through one of the FHLBC’s member institutions. “Congratulations to Cinnaire on their Affordable Housing Program awards. The Federal Home Loan Bank of Chicago is proud to invest in our members, their partners and the communities they serve,” said Suzi Thackston, its Community Investment Officer. “Because of their collective efforts more than 200 families will have a quality, affordable place to call home.”

Inner City Christian Federation (ICCF), a nonprofit organization based out of Grand Rapids, MI, will use the award at LaGrave at Tapestry Square. “We are honored to receive this award,” said Ryan VerWys, president and CEO of ICCF. “The strength of any community depends on the diversity of its residents and the variety of its housing options. ICCF is grateful to work with Cinnaire to increase housing opportunities for all who live and work in our community.”

The following projects will receive AHP awards through Cinnaire Lending: GRAND RAPIDS, MI: 435 LAGRAVE AT TAPESTRY SQUARE Cinnaire Lending will provide $272,000 of AHP subsidy to Inner City Christian Federation (ICCF) for the acquisition and new construction of 20 units of rental housing; a portion of the units will serve youth aging out of foster care. Supportive services will include case management, individual goal setting, financial literacy and budget training, peer mentoring and mental health support groups. Total jobs supported: 43 (13 direct; 30 indirect)

CINNAIRE

TINLEY PARK, IL: THE RESERVE AT TINLEY PARK Cinnaire Lending will provide $675,000 of AHP subsidy to Buckeye Community Hope Foundation for the acquisition and new construction of 47 units of rental housing. This family project will provide supportive services including assistance for applying and receiving benefits and financial literacy training.

All units will be handicap accessible or adaptable. Total jobs supported: 95 (30 direct; 66 indirect) MILWAUKEE, WI: HAYMARKET LOFTS Cinnaire Lending will provide $850,000 of AHP subsidy to Lutheran Social Services of Wisconsin and Upper Michigan, Inc. for the acquisition and adaptive reuse of an existing building into 72 units of rental housing.

This family project will provide supportive services including health care coordination, employment readiness, financial literacy training and an educational empowerment program. Cinnaire, as needed, may consider transferring the deal to another member bank. Total jobs supported: 120 (40 direct; 80 indirect) RACINE, WI: 1520 CLARK STREET Cinnaire Lending will provide $850,000 of AHP subsidy to Lutheran Social Services of Wisconsin and Upper Michigan Inc., for the acquisition and rehabilitation of 74 units of rental housing; a portion of the units will be visitable by individuals with disabilities. This family project will give preference to veterans and provide services including employment readiness, financial literacy courses, and educational empowerment programs. Cinnaire, as needed, may consider transferring the deal to another member bank. Total jobs supported: 25 (10 direct, 15 indirect) CINNAIRE IS A FULL-SERVICE FINANCIAL PARTNER THAT SUPPORTS COMMUNITY AND ECONOMIC DEVELOPMENT INITIATIVES THROUGH CREATIVE LOANS, INVESTMENTS AND BESTIN-CLASS SERVICES. WE MATCH COMMUNITY INVESTMENT OPPORTUNITIES WITH COMMUNITY-FOCUSED INVESTORS. AVENUES TO AFFORDABILITY

One step ahead.

Within our full-service accounting and advisory firm, Baker Tilly’s nationally recognized affordable housing specialists can help you analyze options, overcome barriers, and uncover resources to make your project successful.

Our strategic solutions go beyond the basics to help public and private development entities, managers, lenders, and investors make the right decisions with candid advice and clear industry insight.

Connect with us: bakertilly.com Don Bernards, CPA, Partner 608 240 2643 | Donald.Bernards@bakertilly.com

Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. Š 2015 Baker Tilly Virchow Krause, LLP

19

EVENTS & HAPPENINGS

UNIVERSITY TO AFFORDABILITY CONFERENCE SET FOR MAY 2016 Cinnaire is in the midst of planning the 2016 University to Affordability Conference to be held May 17-18 at Blue Chip Casino in Michigan City, Indiana.

This conference is planned with you in mind. We have sessions geared toward staff in Management, Developers, Maintenance, Property Managers/ Leasing and a special section all about Energy!

We have teamed up with CEDAM this year to provide you with exceptional education at a very affordable price.

Our primary focus will be on Communication, Personal Development and living a Healthy Lifestyle. It has been proven that if employees develop themselves personally and incorporate healthier habits into their lifestyle, they are not only more productive, but get sick less.

Several sessions we are planning now: • Communication Strategies • Great Customer Service Through Better Communications • Professional Etiquette • Smart Talk on Communication (Writing more effectively)

We Do More Than Just Answer Your Questions…

WE CREATE THE SOLUTIONS! “My properties have shown incredible improvement since you started working with them. I can’t believe how much better the sites are doing today.

I don’t know what took me so long to get you involved!”

Lora D. Gilbert, Vice President of Asset Management, Larc Properties, Inc.

• REAC • Year 15 • Lessons Learned in Providing PSH for Homeless Vets • Permanent Supported Housing – Veterans • Healthy Outcomes (Strong Family Fund) • Compliance • Equitable Transportation Oriented Development • State of the Market • Communicating with the 3-4 Generations in our Workplace Today • Benchmarking: monitoring water and energy use for savings • Lessons Learned & Practical Advice in the Energy Efficiency World SPONSORSHIP OPPORTUNITIES We have several prime sponsorship opportunities available for the University to Affordability Conference.

If you are interested in connecting with managers, property managers, leasing agents, maintenance personnel from property management companies; developers/contractors and other general people in the affordable housing industry, this is the conference to get exposure. We also have tradeshow booths available. Call Jen Calery at 517.896.0873 or email her at jcalery@cinnaire.com.

Look for registration information and more details on sponsorship opportunities in late February!

Operations • Marketing • Leasing • Training Specialists Call Today to Reduce Expenses and Increase Your Occupancy 800.865.0948 | www.occupancysolutions.com 20

CINNAIRE

UPCOMING EVENTS Cinnaire has many exciting events planned for 2016, please save the dates and stay tuned for more information!

Covering all the angles.

[ It’s what we do ]

HAVEN HOUSE PANCAKE BREAKFAST FUNDRAISER February 6, 2016 Applebees East Lansing, MI

Community ReseaRCh services is a full-service community development consulting firm, with a strong background in real estate research, development consulting, and community revitalization.

We help you make informed decisions…with proven results!

www.CommunityresearchServices.com

TITLE SERVICES AND THE CFTSINAS DRAMIS LAW CYCLING TEAM CYCLING FUNDRAISER February 6, 2016 Lansing Brewing Company Lansing, MI

301 N Clinton Ave P.O. Box 87 St. Johns, MI 48879

BUILDING MICHIGAN COMMUNITIES CONFERENCE April 25 – 27, 2016 Lansing Center Lansing, MI CINNAIRE RECEPTION DURING BUILDING COMMUNITIES CONFERENCE April 25, 2016 Cinnaire Offices Lansing, MI

989 668 0600 phone 989 668 0602 fax kmurdock@cr-services.com

{Build.} A higher return on experience.

Get the expert support you need to see your project through to completion.

•

Audits, reviews, & compilations

•

Transaction structuring

CINNAIRE BOARD RETREAT May 3 – 5, 2016 Willimgton, DE

•

Market feasibility

•

Financial projections

•

Tax credit incentivized financing

UNIVERSITY TO AFFORDABILITY CONFERENCE May 17 - 18, 2016 Blue Chip Casino Michigan City, IN

•

Tax planning & compliance

•

Strategic & business planning

CHILDREN’S TRUST FUND FUNDRAISING EVENT May 18, 2016 Lansing, MI AVENUES TO AFFORDABILITY

Connect with us on Facebook

Protecting your bottom line while you build from the ground up.

Robert Edwards, CPA 517.336.7460 robert.edwards@plantemoran.com plantemoran.com

21

ADVERTISER INDEX MANAGING EDITOR

Mary McDaniel, CMP, Alternative Solutions 517.333.8217 mcdaniel64@comcast.net

ADVERTISING

Jennifer Calery, Alternative Solutions 517.896.0873 jcalery@capfund.net

GRAPHIC DESIGN

Melissa Travis, Ink Ideas Graphic Design 989.272.3101 www.inkideasgraphicdesign.com

COVER ILLUSTRATION

Matthew McDaniel, Student matthewmcdaniel1294@gmail.com

EDITORIAL

Kelly Rogers, Pixie Publishing, LLC 517.575.5051 pixiepublishing@gmail.com Avenues to Affordability magazine is published quarterly by Cinnaire. This publication is copyrighted. The reproduction of Avenues to Affordability is prohibited by law. For additional copies, comments, concerns or to be added to the mailing list, please contact the Cinnaire office at 517.482.8555 or visit www.capfund.net.

Associated Management Company................................................................................... 18 Baker Tilly.................................................................................................................................. 19 Blystone & Bailey.................................................................................................................... 18 Chesapeake Community Advisors, Inc............................................................................ 22 Clark Hill.....................................................................................................................................14 Community Economic Development Association of Michigan................................... 19 Community Research Services............................................................................................ 21 Dauby O’Connor & Zaleski.....................................................................................................11 Ginosko Development Company....................................................................................... 24 Keller........................................................................................................................................... 15 KMG Prestige........................................................................................................................... 15 Loomis, Ewert, Parsley, Davis & Gotting, P.C.....................................................................9 Love Funding............................................................................................................................ 16 M3 Group.....................................................................................................................................6 Maner Costerisan, P.C........................................................................................................... 22 Medallion Management, Inc................................................................................................. 19 MHT Housing, Inc................................................................................................................... 23 O’Brien Construction Company, Inc.....................................................................................2 Occupancy Solutions............................................................................................................ 20 Plante Moran............................................................................................................................ 21 PM Environmental................................................................................................................... 15 Rohde Construction.................................................................................................................. 4

What’s so special about the number 5?

Maner Costerisan has 5 departments ready to serve our client needs

2425 E. Grand River Ave., Ste. 1 Lansing, MI 48912-3291 T: 517 323 7500 • F: 517 323 6346 www.manercpa.com www.manersolutions.com 22

CINNAIRE

Promises Made, Promises Kept.

Syndicators and lenders will attest to our rock solid reputation.

For more information, contact our administrator at 248.833.0550

1118 S. Washington Avenue Lansing, MI 48910 www.capfund.net

Ginosko Development Company “Creating a Brighter Community Today” Ginosko Development Company (GDC) is a real estate development company specializing in the creation and preservation of quality affordable housing. GDC has a successful track record meeting the financing challenges of these developments, from MSHDA and HUD loan programs, tax-exempt bond programs, rental subsidy programs, and Low-Income Housing Tax Credits; to historic tax credits, brownfield credits and other specialized financing programs unique to the affordable housing industry. GDC is also known for its success in meeting the design, planning and environmental challenges of these developments. GDC’s residential communities are recognized for careful and coordinated planning, an experienced development team of top architects, attorneys, contractors and engineers, attention to detail and design quality, and respect for the environment. Visit our website to get to know us better!

Ginosko.com 41800 West 11 Mile Road, Suite 209 | Novi MI 48375 | office 248.513.4900 | fax 248.513.4904