a tale of two cities: multi-phase acquisition / resyndication case studies · 2017-02-22 · a tale...
TRANSCRIPT
![Page 1: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/1.jpg)
A Tale of Two Cities:Multi-phase Acquisition / ResyndicationCase StudiesF E B R U A R Y 2 2 , 2 0 1 7
C L A U D I A B R OD I E , S E N I O R V I C E - P R ES I D EN T , M C C O R M AC K B A R O N S A L AZ AR , I NC .
D A N I E L M . R O SE N, F O UN DI N G P A R T NE R , K L E I N H O R N I G , L L P
![Page 2: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/2.jpg)
Who is McCormack Baron Salazar?
191 Projects | 20,000+ Homes
$3.7 Billion Invested
45+ Years1.44
million sf of commercial
22 States
2 Territories + D.C.
45 cities
900+ Employees
![Page 3: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/3.jpg)
Who is Klein Hornig?
National Practice
www.kleinhornig.com
33 AttorneysBOSTONlocation
DC location
Firm Focus:Structuring, managing and closing affordable housing and community development projects
![Page 4: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/4.jpg)
Who is Klein Hornig?
New Markets Tax Credits| Historic and Renewable Energy Credits
Community Development | Affordable HousingCommercial and Mixed Use
LIHTCPHA
Mixed-Finance
HOPE VICNIRAD
FHA insured LoansMark-to-Market
Section 236 Recoupling
HOME CDBG
Tax-exempt Mortgage Revenue Bonds
501(c) (3) Bonds
![Page 5: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/5.jpg)
Case Study: Crawford RobertsPittsburgh, PA
![Page 6: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/6.jpg)
Crawford Square
![Page 7: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/7.jpg)
A City and Community on the Rise
Downtown has seen a tremendous amount of public and private investment in the past decade. From January 2006 through September 2016 alone, over $7.48 billion worth of investment projects have been completed, are actively under construction, or have been announced in Greater Downtown.
![Page 8: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/8.jpg)
The Hill 1991 to 2006
![Page 9: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/9.jpg)
About the Hill District
7 Phases | 863 Homes
$122 Million Invested by MBS
Since 1991
56Homeownership
108 Senior
Apartments
699 Family
Apartments
1Revitalized Community
![Page 10: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/10.jpg)
Crawford Square Site Plan - Unchanged
![Page 11: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/11.jpg)
http://www.post-gazette.com/business/development/2016/01/28/Peduto-strikes-deal-to-save-affordable-housing-at-Crawford-Square/stories/201601280116
![Page 12: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/12.jpg)
Crawford Square Acquisition / Resyndication: Uses
One Phase346 Residential Units
152 Market | 194 LIHTC: 134>60%; 60<50%
Three Phases348 Residential Units
154 Market | 194 LIHTC: 147>60%; 47<50%
![Page 13: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/13.jpg)
Crawford Square Acquisition / Resyndication: Sources
One Phase346 Residential Units
152 Market | 194 LIHTC: 134>60%; 60<50%
Three Phases348 Residential Units
154 Market | 194 LIHTC: 147>60%; 47<50%
![Page 14: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/14.jpg)
Three Phases348 Residential Units
154 Market | 194 LIHTC: 147>60%; 47<50%
• Investor Exit from all 3 Partnerships
• No Real Estate Transfer (Transfer Taxes, Ten Year Rule)
• New 1st Mortgage Loan $13,000,000 (Bridge)
• New 2nd Mortgage Loan $6,000,000 (HACP -- Permanent)
• No Modification of Existing $16,000,000 Debt (Timing Question –OID/COD? True Debt Concerns Later?)
![Page 15: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/15.jpg)
One Phase346 Residential Units
152 Market | 194 LIHTC: 134>60%; 60<50%
• Real Estate Transfer –New Entity to Purchase all 3
• New 1st Mortgage Loan $25,100,000
• Modification of Existing $16,000,000 Debt: Assumed by new owner, extend maturity, interest @ AFR
![Page 16: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/16.jpg)
vOccupancy•Unit turns•Host Units
vFiscal Health•Managing DSC with existing lenders –three phases alone and roll up
vMessaging•Residents and Relocation- checkerboard•Construction •Owner/lender
Operations and Management Considerations
![Page 17: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/17.jpg)
O’Fallon Place – The Other City
![Page 18: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/18.jpg)
PittsburghM
SA R
ank
Popu
latio
n (2
015
Estim
ate)
% C
hang
e (fr
om
2010
Cen
sus)
Med
ian
Inco
me
Pove
rtyRa
te
Cou
nty
Pove
rty R
ate
Unem
ploy
men
t Ra
te
25 304,391 -0.43% 40,715 22.9% 12.0% 5.2%
20 315,685 -1.1% 35,559 25.5% 10.3% 4.0%
323,127,513 4.7% 53,889 13.5% 13.5% 4.9%
St. Louis
USA
![Page 19: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/19.jpg)
The Near North Side: A Marginalized Neighborhood
6,000 units of Public Housing in one neighborhood…
![Page 20: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/20.jpg)
Existing Site Plan & Ownership
![Page 21: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/21.jpg)
RENOVATION DEMOLITION
Strategic Demolition and Renovation
![Page 22: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/22.jpg)
O’Fallon Place – here we come…
![Page 23: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/23.jpg)
Preservation Square Acquisition / Resyndication: Uses
Five Phases555 Residential Units120 Moved Off Site
Four Phases Overlaid into Two Phases
675 Residential Units
![Page 24: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/24.jpg)
Preservation Square Acquisition / Resyndication: Sources
Five Phases555 Residential Units120 Moved Off Site
Four Phases Overlaid into Two Phases
675 Residential Units
![Page 25: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/25.jpg)
Preservation Square Current Structure
![Page 26: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/26.jpg)
THE VISION
![Page 27: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/27.jpg)
Take Aways: Sources Per Unit
![Page 28: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/28.jpg)
Take Aways: Uses Per Unit
![Page 29: A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies · 2017-02-22 · A Tale of Two Cities: Multi-phase Acquisition / Resyndication Case Studies FEBRUARY 22,](https://reader033.vdocuments.us/reader033/viewer/2022042211/5eb123b07345a60a5d0f11eb/html5/thumbnails/29.jpg)
Questions?F E B R U A R Y 2 2 , 2 0 1 7
C L A U D I A B R OD I E , S E N I O R V I C E - P R ES I D EN T , M C C O R M AC K B A R O N S A L AZ AR , I NC .
D A N I E L M . R O SE N, F O UN DI N G P A R T NE R , K L E I N H O R N I G , L L P