Urban Trust, LLC Tax Credit Investments for Historic Properties

Transcription

1 Urban Trust, LLC Tax Credit Investments for Historic Properties DEVELOPMENT AND FINANCIAL ADVISORS TO THE HISTORIC TAX CREDIT INDUSTRY SINCE 1994

2 ABOUT THE COMPANY Development and Financial Advisors to the Historic Tax Credit Industry Urban Trust, LLC, a Florida limited liability company, is a tax credit real estate investment capital advisory firm specializing in packaging tax credit investments for historic property owners. We have provided development and financial advisory services to historic property owners and the historic tax credit industry since The firm provides equity placement, financial, development and strategic advisory services for historic rehabilitation tax credit projects. Clients have included developers, corporations, financial institutions, nonprofits, and government agencies. The firm has been involved in the redevelopment of over 26 historic districts and historic rehabilitation projects totaling $16.3 million in tax credit equity. Investment Focus Urban Trust focuses on small and large historic rehabilitation projects with rehabilitation costs generally between $500,000 and $12 million. The firm also provides financial and strategic consulting services for the historic real estate assets of local governments and non-profits. We consult on their economic feasibility for tax credit rehabilitation and assist in structuring public-private partnership ventures. Company Services Urban Trust provides tax credit, development and strategic advisory services to owners and developers of historic properties at all stages of the real estate development process: Historic Rehab Tax Credit Equity Placement Deal Structuring and Financial Advisory Services Pre-Development Feasibility Analysis Historic/Low Income Tax Credit Entitlements New Markets Tax Credit Equity Fee Development and Project Management Services Rehabilitation of Nonprofit and Government Owned Historic Properties Using the Section 168(h) Election Process We package tax credit investments for historic property rehabs. Under our Exclusive Representation approach we shop the investment through our extensive national tax credit investment network and negotiate the best structure, price and terms for our clients. We are not affiliated with any specific investor or fund.

3 CLIENTS & PROJECTS The firm s practice focuses on small and large historic rehabilitation projects with rehabilitation costs generally between $500,000 and $12 million. Listed below is a sampling of recent client projects with their estimated tax credit amounts. The Historic Phoenix Hotel Waycross, GA Federal HTC/NMTC: $1,522,814 Urban Trust was retained as the exclusive tax credit advisor and syndicator for the $7.2 million historic rehabilitation of the Phoenix Hotel in Downtown Waycross. The rehabilitation is being undertaken as a public-private partnership between the Downtown Waycross Development Authority and a for-profit corporation. Urban Trust assisted on the legal and financing structure of the partnership. New Markets Tax credits are involved in this reuse of the building as corporate offices. The Historic Fitzpatrick Hotel Washington, GA Federal HTC: $315,774 Urban Trust was engaged as the exclusive tax credit financial advisor and consultant for the $2.2 million historic rehabilitation of the 1898 Fitzpatrick Hotel located on the Public Square in downtown Washington, Georgia. The 17 room boutique hotel includes a restaurant and three retail tenants. Urban Trust secured competitive equity proposals and advised on the selection of the $315,774 historic tax credit national preservation fund investor. The Georgia Children s Museum-Phase One Macon, GA Federal HTC: $250,000 Urban Trust was engaged as the tax credit financial advisor and consultant for Phase One of the $4.1 million historic rehabilitation of 382 and 370 Cherry Street as the Georgia Children's Museum and Annex. Using a unique nonprofit and for-profit structure the four phases of renovations include both historic and New Markets tax credits. Technicon Corporate Headquarters Macon, GA Federal HTC: $1,071,620 Urban Trust, LLC served as tax credit and syndication consultant providing equity placement and financial advisory services for the $4.8 million dollar corporate headquarters building. We prepared the initial operating forecasts and advised the partnership on tax credit equity structuring. We secured competitive equity proposals, advised on the selection of the $1,071,620 historic tax credit investor and managed the partnership s due diligence and tax credit equity closing activities. Sanctuary Lofts Tampa, FL Federal HTC: $497,408 The Partnership retained Urban Trust as the exclusive financial advisor to Tyer Temple, LLC for the $3.2 million certified historic rehabilitation of the Tyer Temple Church and School Addition into 32 loft style apartments and 4,000 square feet of office space. Urban Trust provided financial and structuring advice to the Partnership and syndicated the tax credits. Urban Trust, LLC is an owner/partner in the Project. Jackie Robinson Ballpark Daytona Beach, FL Federal HTC: $2.2 Million Urban Trust was engaged to conduct the successful tax credit eligibility determination, oversee the renovation design, assist in structuring the financing and secure the equity for the $11.4 million multi-phase rehabilitation of this National Register Ballpark. The transaction relied on a complex deal structure involving three private entities, a non-profit entity and its for-profit subsidiary. This is the first Professional Minor League Baseball Park to qualify as a certified historic rehabilitation.

4 Luther Williams Field Macon, GA Federal HTC: $1,207,000 Urban Trust was retained by the City of Macon to undertake a feasibility study on utilizing the historic investment tax credit for the financing of improvements to the City s historic Minor League Ballpark. We prepared a strategic plan for the historic rehabilitation of Luther Williams Field, recommended a $6 million dollar financing plan that included the historic tax credit, City bonds and naming rights revenues and managed the HOK SVE/Atelier rehabilitation design program for the City. We were also retained to secure a new professional baseball team as a tenant for the Ball Park. Annie Lytle School Jacksonville, FL Federal HTC/LITC: $1,936,601 Urban Trust, LLC consulted on the financing and development of one of Jacksonville's oldest schools into downtown apartments. Urban Trust's role in the project was tax credit consultant and development advisor to the local foundation who owns the property. Morgan Cigar Factory Tampa, FL Federal HTC/LITC: $617,500 Urban Trust served as the financial and development advisor to a non-profit housing partnership on the $2.4 million planned rehabilitation of a historic Cigar Factory into 28 elderly apartments. The financing plan involved layering five financing sources including local government and low income and historic tax credit equity investors. Urban Trust structured the partnership entity and turnkeyed the pre-construction transactions. Sail Boat Bend Artists Lofts Fort Lauderdale, FL Federal HTC/LITC: $6,765,379 Urban Trust was retained as the exclusive low income and historic tax credit consultant by Artspace Projects, Inc., a national non-profit developer of affordable housing for artists Oak Street Jacksonville, FL Federal HTC: $10,000 Urban Trust advised on the tax credit rehabilitation of a historic house in Jacksonville's Riverside Historic District. The property will be rehabilitated into offices for a public relations firm, The McCormick Agency. The engagement included submittal for tax credit entitlements, verification of tax credit eligible expenditures and securing the local historic property ad valorem tax exemption Margaret Street Jacksonville, FL Federal HTC: $50,000 Urban Trust was retained as the exclusive tax credit financial advisor and consultant for the $250,000 historic rehabilitation of a Riverside District 1912 Prairie-style house. The property will be used for office space. We have shown our non-profit clients/owners of historic properties that they can create for-profit subsidiaries, take advantage of the Section 168 (h) election process and realize the same tax credit equity benefits as their forprofit colleagues.

5 EQUITY PLACEMENT Typically we are retained by the developer/owner to place the tax credits with equity investors, advise on the appropriate real estate structure for the deal and coordinate the equity due diligence and closing process for the client. Urban Trust is committed to securing the best tax credit price and investment terms for each client. Our services for each engagement can include: Securing competitive tax credit equity investor proposals that match the needs of the project Tax Credit Equity Investment Process Investment Closing Results Investor Offsets Federal (and State) Tax Liability Receives: Five Years Asset Management Fees Five Years 3% Preferred Return Fifth Year Buy-Out Proceeds Investment Partnership Provides Investor Annual Audit & Quarterly Report of Operations for Five Year Period Negotiating the best possible tax credit equity price and investment terms for the owner Assist in structuring a deal that works for both owner and investor Prepare spreadsheet analysis, investment analysis, and cash flow analysis Coordinating the due diligence and closing activities of the owner/development team, investor, local counsel, CPA and tax attorney Historic Rehab Property Historic Rehab Partnership Fund Counsel Provides Partnership & Equity Documents Client s Counsel Provides: Title Insurance UCC Tax Lien Search Certificate of Organization & Good Standing Review of Operating Agreement If required, secure tax credit entitlements from state and federal authorities After rehabilitation is complete advising our clients during the tax credit cost certification process If required, provide development management expertise to get the historic project designed, built and closed to insure that it qualifies for the investment tax credit. These services are especially helpful for clients who are new to the historic rehabilitation program Tax Credit Equity Fund(s) Urban Trust Urban Trust, LLC Services for Clients include: Advise on Financial/Legal Structure Document Rehab Investment Verify Tax Credit Entitlements Place Tax Credit Equity Negotiate Investment Parameters Analyze Proposed Equity Price & Terms Verify Investment Criteria Ten Year Forcast Secure Tax Opinion Manage Closing Checklist Coordinate Closing Execution Assist On Post Closing Tax Credit Cost Certification

6 COMPANY RESOURCES Andrew M. Ham, Managing Director Andrew Ham has been actively involved in providing tax credit placements, tax credit investment advice, and historic property rehabilitation and entitlement services since the-mid 1980 s. With a background in private and public development Mr. Ham leads the consulting team on most assignments. Ham is a recognized expert on tax credit rehabilitation real estate and finance. He is proficient in commercial real estate development, construction, leasing, market analysis and the structuring of historic rehabilitation real estate transactions. Mr. Ham received his Bachelor of Arts Degree in Political Science from Widener University and a Masters of Science in Urban Planning from Virginia Tech. He has served on the adjunct faculty of several colleges teaching courses in urban redevelopment. He is a lecturer on the historic tax credit and historic rehabilitation at the Department of Urban and Regional Planning, University of Florida and the University of Georgia, Athens. Ham has been active in national professional organizations including the Urban Land Institute and The National Trust for Historic Preservation. In Florida, Mr. Ham has served as a regional chairman for the Urban Land Institute and is a past President of the Florida Redevelopment Association. His local preservation leadership includes serving as Chairman of the Tampa/Hillsborough County Historic Preservation Board and as President of its Foundation. Firm Associates John L. Tennison, AIA Atelier Architects, Tampa, Florida Jerome Breed, Esq. Powell, Goldstein, Frazer & Murphy, Washington, D.C. Kirby Glaze, Esq. 4 PM, Atlanta, Georgia Firm Services Investment Tax Credit Transactions Equity and Syndication Historic Property Redevelopment Strategies Tax Credit Certified Rehabilitation Development Real Estate Investment and Financial Analysis Tax Credit Advisory Services In Rehab after Rehab using our unique approach clients realize higher tax credit investment prices, more advantageous terms and better net equity investment yields over the five-year investment period than dealing with only one institutional investor or national preservation fund

7 Urban Trust, LLC 1904 San Marco Boulevard Suite 3 Jacksonville, Florida