Imagine winning 100 games in a row? Or being able to lift 11 times your weight? Those images help describe The Catalytic Fund, which has now executed over 100 projects without ever losing a cent of investors’ capital, generating in the process an economic impact 11 times its investment pool.
The 100th project is a perfect example of the prior ninety-nine. A once-forgotten Covington warehouse is on the verge of a dramatic transformation, as longtime Northern Kentucky developer Orleans Development works to convert the building into 39 market-rate apartments that will bring new life to the city’s Westside neighborhood.
To help make this vision a reality, Orleans Development sought the expertise and backing of the Catalytic Fund, a Community Development Financial Institution dedicated to revitalizing Northern Kentucky communities through strategic real estate investments.
The Catalytic Fund, after its due diligence process, provided an acquisition and pre-development loan for the project, which now counts as the nonprofit lender’s 100th to date. It’s a testament to the company’s dedication to unlocking the potential of a long-underutilized space to reinforce the continued momentum of Northern Kentucky’s urban renaissance.
Combined, the Catalytic Fund’s 100 projects represent more than $500 million in total investment. A huge feat particularly in relation to the Fund’s $32 million investment pool.
“Reaching this milestone of 100 successful projects is a huge accomplishment for our team,” Jeanne Schroer, Catalytic Fund president and CEO, said. “These projects represent both the financial success of our strategy and the community impact of our investments. We look forward to continuing our work to create new opportunities for both businesses and residents and, together with our growth organization partners, strengthening Northern Kentucky’s economic landscape.”
Since its inception in 2013, the Catalytic Fund has executed projects that convert neglected or underutilized properties into quality spaces that generate economic activity and attract additional investment. With an emphasis on housing, mixed-use developments and the revitalization of key commercial corridors, the Fund’s impact is visible throughout Northern Kentucky’s river cities. Representative projects supported by The Catalytic Fund include:
• The Hotel Covington – A once-iconic historic building was transformed into a modern, upscale boutique hotel, jumpstarting the revitalization of Covington’s downtown. The project brought new jobs, tourism and confidence in the market potential of adaptive reuse.
• The Kent Lofts – In Bellevue, a historic but vacant and blighted warehouse became 66 contemporary loft-style apartments. This development attracted nearly 100 new residents and helped stabilize the surrounding neighborhood.
• The Boone Block Lofts – A historically significant Covington building was converted into nine unique townhomes, each blending historic character with modern living. A public art installation and a living wall made the project a distinctive community landmark.
More recent investments include loans for the Burton Building in Dayton, which transformed a vacant historic structure into 10 mixed-income apartment units and the new Wayfarer restaurant, as well as SparkHaus, Northern Kentucky’s new hub for entrepreneurship.
Despite the risks of real estate investment, the Catalytic Fund has never experienced a loss of its investors’ capital — underscoring its sound underwriting practices and due diligence. By working closely with local developers, community stakeholders and government partners, the Fund ensures each project is a long-term success.
“Jeanne Schroer, Joe Klare, and the team at the Catalytic Fund have played a key role in the City of Covington’s renaissance,” added Judge/Executive Kris Knochelmann. “Their rigorous analysis of every project assures minimum risk, while also making sure no impactful redevelopment opportunity is unnecessarily passed over. As much as The Catalytic Fund has accomplished in the last dozen years, I believe they have the potential to multiply their impact throughout Kenton County in the decades to come.”
Looking ahead, the Catalytic Fund plans to launch an additional fund specifically for housing production in Northern Kentucky and to expand its investment area beyond the river cities into more communities in Boone, Kenton, and Campbell counties.
The Catalytic Fund is planning a community celebration on October 15 to thank outgoing founding Board Chairperson, Chuck Scheper, welcome new Board Chairperson Bernie McKay and celebrate its 100 project milestone.
For more information about The Catalytic Fund and its work, please visit www.thecatalyticfund.org.
The Catalytic Fund is a private sector not-for-profit Community Development Financial Institution, that provides non-traditional financing and related property development advisory services. The Company serves developers, property owners, and investors across municipal and public entities, private business, and non-profit entities with interests in quality residential and commercial real estate projects within a Northern Kentucky Investment Area. The Company’s strategic purpose is to attract and execute quality place-based investments that result in regional economic development (job and talent attraction) and local community development (improving quality of life and place).
The Catalytic Fund executes high impact real estate development projects via a $32M fund capitalized though loans and grants provided by banks, foundations, private corporations, and the US Department of Treasury Community Development Financial Institution Fund. Its expertise in real estate finance, urban planning, historic preservation, and community and economic development allows the Company to convert community revitalization plans into lasting and tangible assets.
