Historic renovation deals. Too good to be true?

[Sawyer Smith]

We in the past year we have had 2 pretty incredible deal come our way. They are both historic renovations on large (50k+ Sq Ft) buildings that are solid structure. Because sign over the state and federal historical tax credits to the bank as our down payment, we are essentially able to finance the $5 million renovation with no money down. The second building is pretty much the same, but because its a blight on the city they are essentially giving it to us for free. So in this case we are looking at a $7 million cash flowing asset in exchange for a $100k donation to a historical non profit in the area. We have done our market research and there is a real need for market rate rentals in the area, The city and public are very on board with both projects, and by our number we should see close to a 300% COC return on these projects. Obviously there are going to be some roadblocks along the way, and we don't expect this project to be painless.

So here is my question, Is this too good to be true? Where are the holes in our plan? Or is this a solid investment opportunity?

Feel free to be as cynical as possible.