Court square center memphis tennessee
Download
1 / 16

Court Square Center Memphis, Tennessee - PowerPoint PPT Presentation


  • 52 Views
  • Uploaded on
  • Presentation posted in: General

Court Square Center Memphis, Tennessee. Project Background Project Structure Risks & The Back End Parting Words & A Few Tips. Map: Downtown Memphis. The Real Estate.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha

Download Presentation

Court Square Center Memphis, Tennessee

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Court Square CenterMemphis, Tennessee


  • Project Background

  • Project Structure

  • Risks & The Back End

  • Parting Words & A Few Tips


Map: DowntownMemphis


The Real Estate

Building Type: Columbian Mutual Tower 21-story high-rise Court Annex 7-story mid-ride Lowenstein 5-story mid-rise

Project Size (NSF):

BuildingResidentialCommercial Columbian Mutual Tower 41,935 19,429 Court Annex 22,596 9,171 Lowenstein 34,985 8,993

Total 99,516 37,593

Residential Units: 77 Market Rate Rental Units; $1.12 nsf average in rent


The Real Estate

Commercial/Retail Space:

Approximately 40,000 square feet; $15.00 nsf average

Signed Leases:

The Plough Foundation – National Foundation Memphis Justice Center – Local Law Firm Ceriellos New York Deli – Gourmet Deli / Grocery Store

Signed Lease as % of Total Commercial Space: 45%

Parking: 110 Spaces

Project Estimated Cost: $40,600,000

Estimated Construction: March 15, 2006 – December 15, 2007


Columbia Mutual Tower


Court Annex


Lowenstein Building


Project Facts

  • Fully leveraged deal – All sources generating NMTCs including HTC equity (i.e., twinning)

  • $40,000,000 NMTC allocation from 2 CDEs

    • $26,000,000 allocation from ESIC

    • $14,000,000 allocation from NDC

  • 5 sources of funds including a permanent loan, Section 108 loan, BEDI grant, HTC equity and NMTC equity

  • Two investors/lenders providing loans and equity

  • Both commercial and residential space to be leased/rented with an ~35-65% income split, respectively


Sources

A Loan (Permanent Loan) $11,800,000

B Loan (City 108 Loan) 8,500,000

C Loan (City BEDI) 2,000,000

HTC Equity 6,300,000

NMTC Equity 12,000,000

Total $40,600,000


Uses

Site Acquisition$1,065,000

Construction Costs23,100,000

A & E Costs1,700,000

Financing Costs 3,000,000

Other Soft Costs 10,435,000

CDE Fees / Reserves 1,300,000

Total $40,600,000


Loans

Equity

HTC Equity

Investment Partnership

Qualified Equity Investment

CDE

Qualified Low-Income Community Investment

(Loans or Equity)

Operating Partnership

(Property Owner)

Historic Real Estate

Example of Fully Leveraged NMTC Structure(Including Twinning of Historic Tax Credits)


Court Square Center – Capital Flow of Funds

(Draft)

Investment Partnership

$40,400,000

$26,400,000 ESIC QEI | $14,000,000 NDC QEI

$27,000 Fees & Reserves

FNMA, 49.995%

USB, 49.995%

ESIC, 0.01%

$14,000,000 QEI

$26,400,000 QEI

$9,000,000 QEI

$5,000,000 QEI

ESIC CDE 2 (Loans)

$12,070,000

($11,800,000 Loan +

$270,000 CDE Fees)

ESIC Master CDE, .01%

FNMA, 49.995%

USB, 49.995%

NDC CDE 2

$5,000,000

(Transfer of funds to

NDC CDE 1)

ESIC CDE 1 (Equity)

$14,300,000

($14,000,000 Equity +

$300,000 CDE Fees)

ESIC Master CDE, .01%

FNMA, 49.995%

USB, 49.995%

NDC CDE 1

$14,000,000

($2,800,000 Equity +

$10,710,000 Loans +

$490,000 CDE Fees)

NDC Master CDE, .01%

FNMA, 49.995%

USB, 49.995%

B Loan

($8,500,000)

A Loan

($11,800,000)

Court Square Center LLC

Owner / QALICB

$39,310,000

ESIC CDE, 99.00%

NDC CDE, 0.99%

CS Associates, 0.01%

C Loan

($2,000,000)

D Loan

($210,000)

Equity

($14,000,000)

Equity

($2,800,000)

Draft as of February 1, 2006


Risk

  • The complexity of the transaction adds risk:

    • A mixture of five sources of private and public funds;

    • Both HTC and NMTC programs have recapture rules;

    • NMTC projects by definition are in census tracts with at least 20% poverty;

    • Must maintain at least 20% of revenue from commercial activities.


The Back End

  • Exit Strategies

    • Refinance the project and continue as rental

    • Convert the residential units to condos and retire debt


ad
  • Login