Recent HTC Successes - Novogradac & Company LLP...Recent HTC Successes. PANELISTS. Brad Elphick....
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Transcript of Recent HTC Successes - Novogradac & Company LLP...Recent HTC Successes. PANELISTS. Brad Elphick....
Recent HTC SuccessesPANELISTS
Brad ElphickNovogradac & Company LLP
Nathan WareBakerHostetler
Tucker BartlettSelf-Help
Will BradshawGreen Coast Enterprises
Bill MacRostieMacRostie Historic Advisors LLC
PANELISTS
A-Mill Artist LoftsMinneapolis, MN
Before After
Before After
Rosenwald CourtsChicago, IL
Before
After
Revolution Mill- Greensboro, NC
• Acquired in 2012• ~ 500,000 sf• Office, residential,
restaurants, art studios, galleries, event space
Talking About a Revolution (and its Battles)You thought George Washington had it hard?
Revolutionary BattlesReal Estate Challenges
• Failed Project → Foreclosure
• Environmental → Brownfields Agreement
• Flooding → FEMA/NPS negotiation
• Railroad → Reworked Easements
• Market → Scale/Destination
Foreclosed Tax Credit Project = Revolutionary Unwind• Unwinding a half complete HTC Investment
• Phased placement in service• Still in HTC compliance period at foreclosure
with no Super SNDA• Failed Phase 3 Advisory Letter
• Respected master lease and negotiated with NPS and former HTC investor
Challenging Real Estate = Revolutionary FinancingKey Financial Partners• 3 Tax Credit Investors-
US Bank, PNC, Foss• 5 CDEs- US Bank, PNC,
NCIF, Mid-City, Brownfield Revitalization
Issues:• Coordinating Parties• Different FHTC/SHTC
Investors
Enough Already!!
• Other Historic Tax Credit Issues• Lack of clarity on 50(d)• Functionally Related Complex• Nonprofit Owner/Developer• Reasonableness- Developer Fee
and Market Study
Results• Market Acceptance
• 3 restaurants• 95%+ leased on apartments• Approaching 90%+ leased on office
• Valuation Benefit• As complete appraisal value increased
by 75% from 2014 to 2018
Lessons Learned
• Complexity = time & money• Understand the details• Pick the right financing partners
• Project repositioning = time & money• Big investment
in public areas, marketing, and amenities
• Big contingency
• Persistence
Is the Revolution worth it?
Is the Revolution worth all of this brain damage?
Definitely!!Tucker BartlettExecutive Vice-PresidentSelf-Help Ventures [email protected]
HTC Successes PanelJohn Hartness Brown Building
1001-1101 Euclid AvenueCleveland, Ohio
Obstacles encountered
1.National Park Service issues2.Foreign guarantors3.Preservation easement
The Pythian and Pythian MarketA place of history, community, ingenuity, equity & prosperity
1943 2016
2017 Opening
Rooted in Culture
Top of the Market Performance
A Food Hall for All
Recent HTC SuccessesPANELISTS
Brad ElphickNovogradac & Company LLP
Nathan WareBakerHostetler
Tucker BartlettSelf-Help
Will BradshawGreen Coast Enterprises
Bill MacRostieMacRostie Historic Advisors LLC
PANELISTS
