Earlier this month, we teamed up with ULI South Carolina in Greenville to talk historic tax credit deals with some of the area's best real estate minds. Our own Bill MacRostie and Richard Sidebottom (Director of MHA Southeast) were joined by Marshall Phillips of CohnReznick, Mac McLean of Haynsworth Sinkler Boyd, P.A., and developer Ken Reiter of Belmont Sayre to cover the basics of real estate transactions where historic tax credits are used. In these transactions, if not for the historic tax credit, the deals would not progress as the credits are an essential part of the capital stack.
In Greenville, historic tax credit deals are one of the primary ways many of the old mills along the city’s textile crescent are being rehabilitated. And in communities like the Village of West Greenville along Pendleton Street, the commercial district that grew up to serve workers of Brandon Mill, there is a renewed interest in the architecture that was influenced by the presence of these industries.
Whereas Greenville’s award-winning and stunningly beautiful Main Street, Falls River Park, and West End Historic District were spurred by long-term investment by the city, the emergence of private sector rehabilitations is creating new opportunities for historic tax credits to play a big role in financing the renaissance of arts and culture in Upstate South Carolina’s largest city.
Greenville also benefits from its central location between Atlanta and Charlotte along Interstate 85. What makes rehabilitation in Greenville even more appealing is the competitive historic tax credit programoffered by the state as well as two additional and robust programs, the South Carolina Textiles Communities Revitalization Act and the Abandoned Buildings Revitalization Act, that can help developers and investors to claim up to 65% of qualified rehabilitation expenses in tax credits. Compared with the programs in Georgia and North Carolina, that is pretty generous.