NFF provided $5.5 million in NMTC allocation to support the adaptation and expansion of a vacant junior high school into a modern early childhood education center in Memphis’ South City.
Memphis’ South City neighborhood is best known for its cultural and historical significance, especially in the African American community. The South City neighborhood has produced some of Memphis’ most notable civic leaders, entrepreneurs, politicians, artists, and athletes. It is home to schools, churches, businesses, and housing developments that have long shaped the community and the City of Memphis.
Despite this rich history, South City has experienced decades of disinvestment and demographic shifts as people moved away in search of new housing, more job opportunities and improved access to healthcare – culminating an abundance of deserted properties and vacant land.
A new chapter for South City is unfolding as a once-abandoned junior high school is being transformed into a vibrant new early childhood education center. For local families, this center means more than a building – it’s a chance for children to start school ready to thrive and for parents to access the support they need.
Developed by Urban Renaissance Partners and ComCap Partners, the former MLK Transitional Academy – a 17,495-square-foot facility – will become the South City Early Childhood Education Center (South City ECEC), serving up to 188 children ages 2–5 and with priority enrollment and financial aid for neighborhood families. South City ECEC will be run by Porter Leath – a nonprofit with deep community roots from over 175 years of service and a mission to help children and families succeed.
To make this vision possible, MBS Urban Initiatives CDE (MBS UI), U.S. Bank Impact Finance, and Nonprofit Finance Fund (NFF) announced the closing of $17.5 million in New Markets Tax Credit (NMTC) financing for the South City ECEC. NFF provided $5.5 million in NMTC allocation to Urban Renaissance Partners, Inc., supporting the adaptation and expansion of the MLK Transitional Academy building into a modern educational facility.
Partnering with NFF provided the funding necessary to complete the South City Early Childhood Education Center. Without NFF’s participation, only the first phase of the ECEC would have been completed. Now the center can become a productive asset for the neighborhood serve more families
This $17.5 million redevelopment project is part of a broader effort to revitalize South City, a purpose-built community adjacent to two redeveloped public housing sites under HUD’s HOPE VI and Choice Neighborhoods Initiative programs. The new center will create 28 permanent jobs and 200 construction jobs, with strong commitments to inclusive hiring and local contracting. Beyond jobs, the project will deliver wraparound family services and research-based programming that help children enter kindergarten ready to succeed.
By reactivating a historic property, this project represents a powerful investment in children, families, and the future and legacy of South City.
Visit NFF’s financing page to see how our loans and partnerships help organizations achieve their goals.