FAIRFIELD, Iowa, Aug 26, 2008 (BUSINESS WIRE) -- Cambridge Investment Research, Inc. (Cambridge) announced today its
parent, Cambridge Investment Group, Inc., finalized a substantial
economic boost as Iowa Community Development and investment partner U.S.
Bancorp Community Development Corporation, along with U.S. Bank's
commercial lending group, closed a $5.75 million New Markets Tax Credit
(NMTC) transaction to assist with financing the expansion of Cambridge's
headquarters in Southeast Iowa.
Cambridge, one of the nation's leading
independent Broker/Dealers, is among the top employers in Southeast Iowa
and draws over 95 percent of its home office staff from a five-county
area that includes the counties of Jefferson, Van Buren, Henry, Keokuk,
and Wapello. Cambridge is currently headquartered on a 40-acre tract of
land with a nearly four-acre pond and 145,000 square feet of parking.
The existing two-story, 40,000 square foot building was completed in
late 2005 and designed to house just over 300 employees. Over 250 people
are currently employed at the Iowa headquarters. The Company is
continuing on a path of explosive growth and is expanding to better
serve the needs of its industry. Cambridge's
plans for 2008 and beyond anticipate staffing growth of 30 percent or
more over the next few years.
Cambridge's expansion --
Building II -- is anticipated to encompass
nearly 40,000 square feet and will include a tunnel to provide direct
access to Building I. The three-story building is planned to mirror the
existing office building that was constructed in 2005, but will also
incorporate new "green design"
elements that will take full advantage of daylight harvesting in order
to help reduce heat from artificial lights and related cooling costs.
The roof will also be designed to shade the windows from solar heat
gain. Total cost of the Building II project is expected to be
approximately $6 million and is targeted for completion in 2009.
Schaus-Vorhies Contracting, Inc. of Fairfield, Iowa is again serving as
the general contractor for Cambridge's
building needs. Ver Ploeg Architecture of Des Moines, Iowa is serving as
architect for the second building.
"We appreciate the opportunity to leverage
U.S. Bank's new markets tax credit expertise,
coupled with the resources of Iowa Community Development and the overall
collaborative efforts to support business expansion in rural Iowa,"
said Eric Schwartz, Chairman and CEO of Cambridge. "We
believe this NMTC transaction is a reflection of our leadership and
success at the local and national level and this will not only bring new
jobs to the area, but will undoubtedly spur further development locally."
Schwartz also recognized U.S. Bank's local
vision and creative financial solutions which helped make this expansion
project a reality.
Jeffery Lara, U.S. Bank commercial lending manager based out of Cedar
Rapids said, "We are thrilled to tap into our
organization's wealth of resources for this
worthwhile endeavor and bring constructive improvements to the Southeast
The NMTC program is administered through the Community Development
Financial Institutions Fund (CDFI) of the U.S. Department of the
Treasury. The NMTC program serves as a catalyst to encourage investment
of private equity capital into rural and low-income communities and
allows taxpayers to receive a credit against Federal income taxes for
making equity investments in designated Community Development Entities
(CDEs), such as Iowa Community Development. Iowa Business Growth Company
in Johnston, Iowa, manages the NMTC program for Iowa Community
"With our $45 million New Markets Tax Credit
Allocation Authority from CDFI in 2007, we are working with our investor
partners to create economic and employment opportunities for our
underserved communities in Iowa by providing below market rate loans to
commercial real estate and operating companies,"
said Daniel T. Robeson, executive vice president of Iowa Business
Growth. "We are expectant that future
projects will be equally beneficial to Iowa."
U.S. Bancorp's Community Development
Corporation has provided NMTC financing for three other NMTC projects
with Iowa Community Development in 2007, the Adler Theater, in
Davenport, Museum Building Property, in Sioux City, and River Point
West, in Des Moines.
Cambridge Investment Research, Inc.
Cambridge Investment Research, Inc., member FINRA/SIPC, is among the
fastest growing independent Broker/Dealers in the country providing a
comprehensive array of financial products and services. A privately
owned Broker/Dealer with over 1,200 independent registered
representatives, Cambridge is driven by a fundamental commitment to
providing the highest level of flexible, open-architecture fee and
commission platforms to independent financial planners and investment
advisors across the nation. For more information, visit www.joincir.com.
Community Development Corporation
With assets of over $5 billion, U.S. Bancorp Community Development
Corporation is one of the largest New Markets Tax Credit investors in
the country. It also finances affordable housing and community
development projects through the use of low-income housing, historic,
and renewable energy tax credits. It is a subsidiary of U.S. Bancorp
(NYSE: USB), with $247 billion in assets, and of U.S. Bank, the 6th
largest commercial bank in the United States. The company operates 2,542
banking offices and 4,895 ATMs, and provides a comprehensive line of
banking, brokerage, insurance, investment, mortgage, trust and payment
services products to consumers, businesses and institutions. Visit U.S.
Bancorp on the web at www.usbank.com.
Community Development, LC
Iowa Community Development (ICD) is managed by Iowa Business Growth
Company. ICD will use its NMTC allocation to provide debt financing
products combined with forgivable loan products to real estate
businesses throughout Iowa for construction and rehab projects, building
acquisition, equipment purchases, operating and maintenance expenses,
site development, and working capital. ICD will target projects sectors
such as, advanced manufacturing, life science, information technologies,
retail, and value-added agriculture processing. The NMTC allocation will
enable ICD to make loans at below market rates, to eliminate origination
fees, and to offer longer than standard interest-only payment periods
and longer amortizations.
SOURCE: U.S. Bank
U.S. Bank Media Relations
Lisa H. Clark, 608-877-7517
Cambridge Public Relations
Cindy Schaus, 641-470-1225