Mixed-use anchor closes residential financing, targets 2025 opening
By Stephen MacLeod – Reporter, Memphis Business Journal
October 17, 2024
About a year ago, the former Northside High School site on Vollintine Avenue sat overgrown and in disrepair. Now, the property is undergoing a major transformation.
When the Northside Square development broke ground in 2023, its commercial space — more than 200,000 square feet — was nearly fully leased. Now, the residential component is moving forward as financing for that portion has officially closed.
The $81 million mixed-use project is progressing toward a planned opening in December 2025.
Northside Square will bring 42 affordable housing units to Klondike, a North Memphis neighborhood that has long faced economic challenges. Northside High School, once a central community anchor, closed in 2016 due to declining enrollment.
Once completed, the development will be owned by The Works Inc., a nonprofit community development corporation, and developed by ComCap Partners. Grinder, Taber & Grinder is serving as general contractor, with LRK leading design for most of the project and Aaron Patrick Architects designing the residential units.
Northside Square is intended to serve as a catalyst for revitalization in Klondike. The Works, which is sponsoring the project, aims to create a mixed-income neighborhood with expanded economic opportunities.
“This whole idea is impossible,” said Roshun Austin, president and CEO of The Works. “I believe in the impossible.”
Transforming the former school
The site looks dramatically different from a year ago.
The former school building, once dark and closed off, now features large windows, restored brickwork, and added skylights to bring in natural light. Accessibility improvements, including ramps, are underway, and major systems such as wiring, HVAC, and plumbing are being installed.
Core and shell construction is about halfway complete. The development team plans to open all components of the project at the same time.
Plans also include restoring the school’s gym, which will host community programming and basketball tournaments organized by local partners.
The project will honor the site’s history with a Northside High Hall of Fame located near the main entrance.
Financing and structure
The residential portion of the project is supported by a mix of public and private funding sources.
The City of Memphis is contributing $2 million from its Affordable Housing Trust Fund. First Horizon Bank is providing $3 million in senior debt through a Community Investment Tax Credit. The Health, Educational and Housing Facilities Board has also approved a 20-year payment-in-lieu-of-taxes (PILOT) agreement for the residential portion.
The PILOT structure will generate new tax revenue for the city, as the former school property did not previously contribute to the tax rolls.
Anchoring neighborhood growth
Leaders see Northside Square as a starting point for broader redevelopment in Klondike.
The Works and its partners collectively control more than 400 parcels in the neighborhood — roughly one-third of the area — giving them the ability to guide future development.
Austin said the long-term vision is to create a mixed-income community while preserving affordability for current residents.
“We have opportunities throughout the Klondike neighborhood to provide housing so that we’re not displacing those who are here,” she said. “We’re encouraging former residents to return, while also welcoming newcomers. The goal is a vibrant neighborhood for people of all incomes.”
Currently, Klondike has about 600 affordable housing units. As redevelopment continues, The Works plans to maintain at least that number while expanding opportunities for economic mobility.
With residential financing now secured and construction progressing, Northside Square is moving closer to becoming a key anchor in the neighborhood’s revitalization.