How a Former WNBA Star Found Multifamily

Lew Sichelman

A former women’s professional basketball player has been awarded $1.14 million in Indiana state housing tax credits to build affordable multifamily housing in South Bend, where she played collegiately for Notre Dame,

But it wasn’t as easy for Devereaux Peters as dropping a three-point field goal for the Fighting Irish or the Minnesota Lynx. First, she had to convince a tough five-person panel that her proposed 66-unit project was worthy of the state’s Emerging Developer award for first-time builders.

“We had a 20-minute presentation that we had to do,” said the former foward, who stands an imposing six-foot-two. “Basically, just talking about the project and what our intentions were and what our goals were, and then following up with answering questions that they had.”

The panel consisted of Jacob Sipe, executive director of the Indiana Housing and Community Development Authority, and four students from a local college. The students, all single-mothers taking part in a workforce/career development program, didn’t lob any softball questions at her, either, Peters recalled.

During her presentation at Ivy Tech Community College in Muncie, Ind., they asked about demographics, about income levels, and what resident services there would be in her project, the Monreaux, a pun on her distinctive first name.

Peters’ Chateau 14 Development LLC applied for $1.2 million in state tax credits, and she said she has been awarded $1.14 million. A second multifamily developer, Thirty-Eight Properties LLC, won a similar award for the Anthony Grimes Apartments & Family Center, a new 34-unit housing community where families can recover from addiction.

Peters got a passing grade, and eventually the award, from the unusual panel. The competition was fierce, with eight developments competing for two slots. But the same competitive spirit that drove Peters in her five years playing for the Fighting Irish and her five years in the pros endured in her nascent career as a developer. She said she even enjoyed the competition for the emerging developer award.

Peters is unaware of any other WNBA player who has become involved in developing affordable housing. She also said she was unaware of another state program to develop first-time minority or women affordable housing directors, meaning there’s plenty of room to grow in helping minorities and women to launch their own multifamily careers. Veterans and the disabled also qualify for the Emerging Developer award.

Devereaux Peters of Chateau 14 Development LLC

Peters didn’t just parachute into multifamily from her sports career. After she retired, she became an agent for Berkshire Hathaway in Chicago. There was just one problem. “I hated it,” she said. “I knew that wasn’t where I wanted to be.”

But a high school classmate introduced her to Chicago developer Ron Gatton, who became a mentor, and Peters said she found her calling. Peters has already started developing another project that may become a New Markets Tax Credit deal, a dancing school in Chicago.

The city of South Bend has pitched in with a tax abatement of reportedly about $500,000 and $1.5 million in infrastructure money. So, with this latest award, she is well on her way but still short of having the total development cost. Peters is expecting to get some further funding from an Opportunity Zone fund.

Besides the state tax credits, Peters said she is applying for Solar Tax Credits. No decision has been made yet about applying Low Income Housing Tax Credits. She is looking to a Federal Housing Administration multifamily loan for the bulk of the $18 million financing.

The housing in downtown South Bend will replace the demolished Fat Daddy’s Wholesale Outlet, a military surplus store that featured a rendering of a tank on its storefront.

For the Love of South Bend

It is a labor of love for the former baller, her way of paying back the South Bend community for the open welcome she received during her years playing there. Her stint included a national championship game in 2012.

Peters became interested in South Bend real estate when trying to recruit local high school star Skylar Diggins to play at Notre Dame. That involved several trips to see Diggins play, and those trips through South Bend neighborhoods opened Peters’ eyes to the need for affordable housing in the city. The two remain good friends.

“Notre Dame and the South Bend community in general have been a big part of my life,” Peters said. “I have a lot of relationships there. I still have a ton of friends there and I have some family there.

After Notre Dame, Devereaux Peters played for three WNBA teams.

“So, it’s been a city that has been very important to me. I felt like this would be a cool way to kind of give back and say thank you for all that they’ve done for me and my own personal growth.”

Peters has hooked up with South Bend housing consultant Anne Mannix to work on the project, which is set to have commercial space as well as apartment units.

The target for the Monreaux is expansive, ranging from people in the 30 to 80 percentiles of area median income to some market-rate residents and some commercial tenants. It is possible there will be project-based housing vouchers through the South Bend Housing Authority.

“We  wanted to have a wide range because a lot of affordable buildings end up being simply low-income and we wanted to have a mix of people,” she said.

Plans call for some units to have storefront spaces combined with living space for entrepreneurs. Peters worked with the local community to hear their ideas on what would benefit the neighborhood.

Her plan is to work with Panzika Building Corp. of South Bend once all the financing is secured. She thinks construction should take 14 to 16 months once ground is broken.

My associate Mark Fogarty contributed reporting and writing to this story.