Developer Charles Dickerson Marks Milestone with Completion of Affordable Housing Project in Detroit
Detroit Deputy Mayor Melia Howard and Detroit City Council members recently joined developer Charles Dickerson III to celebrate the opening of “The Beauton,” a $7.3 million mixed-use affordable housing project that brings 29 new units to the North End neighborhood. The Beauton promises to help strengthen the community by addressing housing shortages, boosting the local economy, and revitalizing the area with its vibrant, inclusive design.
Charles Dickerson, whose company CADS III Management is developing the Beauton, is the founding managing partner of CADS III Management INC. which was established in 1998. Dickerson is a proud alumnus of Howard University graduated in 91’ with a Bachelor of Science in Interior Architecture with a minor in History and Political Science.
Active in the development of young men groups in the Church of Christ in the Metro Detroit area, Dickerson holds high the value of honor and honesty in business and in everyday life. While actively serving on the board of many organizations, he continues to progress as both a businessman, husband and father taking on many projects whether it be with CADSIII Management Inc. or in the classroom.
Dickerson is the driving force for garnering partner support for The Beauton, a $7.3 million project that provides 29 new affordable apartments for eligible Detroiters. Rents will be guaranteed for the next 12 years and are based on 50-120 percent of the area median income.
The development also obtained $550,000 in preferred equity and a $100,000 pre-development matching grant for developers of color from DHFF. Capital Impact Partners contributed with a construction loan of $2.45 million, a bridge loan of $1.35 million, and a grant amounting to $93,000.
Additional assistance came in the form of a $1.497 million grant from the Michigan Economic Development Corporation and a $500,000 loan from Ebiara to CADS III Management to support both the project and the firm’s broader growth strategy. The Detroit Economic Growth Corporation granted a tax abatement of $743,000 for the project, which will be distributed over the next 15 years.
Damon Hodge, Senior Loan Officer for Capital Impact Partners, part of the Momentus Capital branded family of organizations, emphasized that Beauton has transformed three parcels that were once vacant, blighted, and aging into a beautiful building featuring a combination of affordable housing and market-rate units.
“We are proud to provide Charles Dickerson with financial support to help stabilize and revitalize the resurgent North End neighborhood. Charles graduated from our Equitable Development Initiative in 2020 and has expanded on his work serving Detroit, while also mentoring emerging local developers so that they too can do even more to help our communities.”
In cooperation with LISC and the city of Detroit, the project qualified for a DHFF Developers of Color Matching Grant, an investment designed to grow the pipeline of minority-led affordable housing and preservation projects in Detroit. It offers up to $100,000 in matching funds to cover a portion of a project’s predevelopment expenses and soft costs. The grants are made possible through a partnership with JPMorgan Chase.
Image courtesy of the City of Detroit
Rob Lockett, Executive Director of LISC Detroit, highlighted DHFF and LISC Detroit are excited to join Dickerson on this affordable housing project for Detroiters.
“Detroit is an important market for LISC, serving the local market since 1990. I’m proud to say that LISC has been a partner in the North End for almost 30 years and excited about our new partnership with Charles Dickerson and CADS III,” Lockett said.
“This development represents the true essence of partnership, where capital to support local developers of color intersects with the mission driven work of providing high quality affordable housing to Detroit residents. We value our local developer ecosystem and will continue to support developers like Charles as they create quality housing solutions for our residents here in Detroit”.
The project also benefitted from a loan from the Ebiara Fund, which is designed specifically to ensure that developers of color not only participate in Detroit’s rebuilding but also grow and scale emerging development firms that play a leadership role in that effort going forward.
Rod Hardamon, Managing Director of Ebiara, noted that the Beauton is the first “from the ground up” project for Charles Dickerson and CADS III Management.
“Our goal at Ebiara is to make sure that historically underrepresented development firms, like CADS III Management, have a significant role in shaping Detroit long into the future,” Hardmon said.