Portfolio Archive - Page 2 of 3 - Arctaris Impact Fund

Erie Flagship Phase II

Erie Flagship phase 2 is a ground-up development of a roughly 80,000 square foot mixed-use building consisting of 30 residential units and one 25,000 square foot commercial space and a 307-space parking garage. The Project is the second part of a multiphase-phase plan to redevelop a section of downtown Erie. Block #1 (Erie Flagship), on North Park Row, which Arctaris invested ~$12.3 million in, consists of a food hall, grocery store in a former food desert, and 28 residential units is currently open and operational.

Impact Thesis

Arctaris Impact’s investment will continue to build on the success of Block #1 to revitalize Erie’s downtown corridor by enabling Erie residents to live, work, and play downtown. As a result of the Erie downtown redevelopment, real estate taxes will increase by about $777k4 following the conclusion of the 10-year tax abatement.

Arctaris Broadband Company

Arctaris Broadband Company, LLC (“ABC”) is a Qualified Opportunity Zone Business, which owns and operates fiber broadband infrastructure in underserved communities through partnerships with internet service providers (ISPs). ABC is currently constructing networks in Colorado and Maine in partnership with local government agencies, ISPs, and foundations, and has a robust pipeline of future opportunities across the nation.

Impact Thesis

Arctaris formed ABC to help bridge the digital divide by making investments in state-of-the-art broadband networks that can deliver future-proof services in underserved urban and rural Opportunity Zone communities. The ABC-owned fiber networks have a useful life that is greater than 20 years and require less ongoing maintenance than traditional copper plant or wireless facilities, which means that ABC’s networks are positioned to provide affordable and high-speed internet to these underserved communities for decades to come.

Altitude Apartments

Altitude Apartments is a development of 100 units of workforce housing serving Glenwood Springs, CO. The property is located 1.4 miles south of downtown Glenwood Springs and 2.1 miles from the Glenwood Hot Springs Pool. As a strategic bedroom community, Glenwood Springs supports many neighboring resort destinations including Aspen, which is approximately 39 miles away.

Impact Thesis

The project addresses the dearth of housing priced at affordable rates for the local workforce. In addition, the development provides convenient access to transportation and resident/community amenities. The project serves the severely constrained region of Garfield County, which estimates a 2,000-unit shortfall over the next 10 years. Additionally, the company follows defined guidelines to support a healthy environment, the advancement of social equity and dignity, and promotion of strong governance principles.

Up to Date Laundry

Up to Date Laundry provides laundry services (e.g., linen rental & cleaning and curtain cleaning) to 550 non-acute healthcare facilities across the mid-Atlantic. Customers include Medstar Health, Johns Hopkins Hospital, and University of Maryland Medical Center; these three accounts represent over 50% of total revenue and are highly stable relationships of 20 – 30 years.

Impact Thesis

UTD is a long-standing business in Baltimore City paying above-market wages and benefits to its employees. The company also supported critical medical cleaning services during the COVID-19 pandemic, driving positive outcomes and safer care delivery for patients. The company has a very diverse base of ~235 FTEs, as well as 150+ part-time employees (primarily Baltimore City residents) and is a significant driver of sustainable jobs within distressed communities such as Poppleton (UTD headquarters), which has a 20% unemployment rate.

Saddleback Mountain

Saddleback Mountain is a ski resort in Western Maine with over 60 years of history and the third largest vertical in the state at over 2,000 feet. Saddleback business lines include downhill skiing, outdoor programming, food & beverage and others. Arctaris reopened the mountain after five years of closure and meaningful economic distress in the local community and has facilitated the renovation of the base lodge, installation of new lifts and several other ongoing capital improvement initiatives.
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Impact Thesis

Saddleback was the largest employer in Rangeley prior to its shutdown in 2015. Arctaris’ investment has created economic impact of 150+ jobs and revitalization of a local economy bringing over 70,000 skier visits per year. Further, Arctaris has made an ongoing commitment to social impact for Saddleback employees through plans for a workforce training center and additional workforce housing. Finally, the team has sold the rights to a 5 MW solar farm, which will produce 2x the electricity needed to operate the resort, creating substantial environmental impact related to carbon emission reduction.

RECARO

Recaro is a market leader in the niche high-performance automotive seating segment, holding a portfolio of patents for high-end performance and safety solutions. The company spun out of Adient (NYSE: ADNT) after Adient was acquired and underwent a lean corporate restructuring. Recaro continues to serve premier auto manufacturing customers today (e.g., Daimler Ford, General Motors, Subaru, Porsche, Audi, Aston Martin) from its locations in the U.S., Japan, and Germany.

Impact Thesis

The divestment from ADNT put quality, livable wage jobs at risk for Recaro. Arctaris supported the company’s relocation to an Opportunity Zone through investment in a light industrial facility in metro Detroit, wherein the company maintains 50%+ of its workforce from the surrounding communities. The company retained 125 jobs with further capacity to create 75 new jobs with scale. Leadership continues to support local workforce development, prioritizing hiring local contractors to upgrade the new facility.

AEL

AEL offers inbound logistics, warehousing, re-packing, labeling, and delivery to large manufacturers across the United States. AEL uses integrated technology and tailored strategies (18- to 24-month lead time) to serve specific needs of major Tier 1 customers (e.g., ThyssenKrupp, Cummins Inc., and Lear Corp).

Impact Thesis

AEL is a minority-owned business with over 400 employees. Many of AEL’s current employees were sourced through the company’s partnerships with local resource groups tasked with hiring from underserved communities. Following Arctaris’ investment, AEL added 33 new living-wage jobs and the lowest wage at the company increased 92%.

Norwich Technologies

Norwich Technologies is a regional developer, installer, purchaser, and owner of solar projects and solar technology. Located in White River Junction, Vermont, Norwich has installed over 30 megawatts (DC) of solar capacity, leading to over 600 million tons of CO2 avoided from reduced burning of fossil fuels. Norwich has been voted among the best places to work in Vermont for the 2nd consecutive year and is the recipient of multiple grants from the U.S. Department of Energy (DOE) for emerging solar technology providers.

Impact Thesis

Norwich Technologies’ financial and environmental goals are directly aligned. As Norwich develops and builds additional projects, growing the company’s revenues, greenhouse gas emission reductions will continue to grow. At the time of investment, Norwich management committed to make commercially reasonable efforts to create living-wage jobs in the low-income census tract of White River Junction and has succeeded in increasing headcount by 38% with the creation of 10 new jobs. Norwich is committed to sharing its commercial success with the local community in Vermont. Norwich contributes a significant portion of its solar credits from Vermont projects toward organizations that support low-income communities.

Erie Flagship Phase II

Impact Thesis

Arctaris Broadband Company

Impact Thesis

Altitude Apartments

Impact Thesis

Up to Date Laundry

Impact Thesis

Saddleback Mountain

Impact Thesis

RECARO

Impact Thesis

AEL

Impact Thesis

Norwich Technologies

Impact Thesis

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