Renovating historic asset along a thriving corridor

[Will Bradshaw]

Investment Info:

Office Space commercial investment investment.

Purchase price: $411,507
Cash invested: $7,500,000

Renovation of historic ice house on thriving New Orleans corridor in partnership with oldest housing non-profit in New Orleans. The building will become a homeownership center, anchored by a credit union. The homeownership center concept brings together multiple businesses that support people in becoming real estate owners. Construction should be complete by the end of 2022. The project includes over $2.3 million in state and federal tax credit equity that subsidizes its development.

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

This was a cool opportunity to collaborate with a four-decade old housing non-profit to help bring an innovative credit union to market as our anchor tenant AND to create a first of its kind space in this city that co-located a bunch of different housing related businesses and organizations in a single space.

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

We responded to an RFP from the non-profit, who was seeking a development partner.

How did you finance this deal?

Conventional debt and equity, and historic tax credits (both state and federal).

What was the outcome?

Construction is just finishing now.

Lessons learned? Challenges?

It was very difficult to finance during Covid. We had to put the whole deal back together during the pandemic.