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 FundTucker.Bartlett@self-help.org919-956-4454

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