This $4.5 million restoration and reuse of a historic building in downtown McConnelsville, Ohio hopes to bring new life to the city center. Its currently seeking an equity investment of $1.2 million.
The idea is to construct 22-loft style apartments on the 2nd and 3rd floor of the Citizens National Bank Building / Stanbery Building, which should qualify federal and state historic tax credits.
The property is in both an Opportunity Zone and a Revitalization District / Historic Preservation District.
The commercial space and national bank on the ground level not part of this project. Significant local support is required, due to the intended use of Tax Increment Financing (TIF) on a site basis. As the federal and state historic preservation tax credits are sold on the market to institutional investors which translates into new equity for the project financing.
Pre-Tax ROI begins with an estimate of 4.8% and increases annually, years 2 thru 10, up to 6.2%.
USES: Anticipated construction renovation at $160/SF for an estimated $3.7 million plus site/other costs of $800,000 for a total of $4.5 million.
SOURCES: Conventional Loan of $1,200,000; Bank contributing equity of $600,000; Federal/State Historic Tax Credits: $750,000; Public/Private Institutional Investment(TIF): $750,000; and Opportunity Zone Fund Investment: $1,200,000.
Monthly rental per unit: $900. Cash flow and ROI: using an average of 84% occupancy.