Fire damaged building restored with historic tax credits

[Will Bradshaw]

Investment Info:

Large multi-family (5+ units) other investment.

Purchase price: $425,000
Cash invested: $900,000

Antebellum home that had been converted to apartments by previous owner that was badly damaged in a fire. We bought it, renovated it, leveraged state and federal historic tax credits and put it back in commerce as 10 apartment units.

What made you interested in investing in this type of deal?

We found the building when it was on fire. Literally. We repaired the damage and put it back in commerce as a newly renovated 160 year-old structure along one of the great boulevards in New Orleans.

How did you find this deal and how did you negotiate it?

We saw the building because it was on fire. We knew the building owner and called him. He wanted the insurance proceeds and to get out. We got the building for a great price, and everyone was happy.

How did you finance this deal?

Conventional debt and equity, and historic tax credit equity (both state and federal). Those credits generated substantial subsidy for the project.