to Breweries Trapezium Brewing Waukeshaw Development INC May 20 2015 INTRODUCTION At the end of 2015 Waukeshaw will have attracted more than 75M to historic redevelopment projects in Virginia and North Carolina ID: 502508
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BrownfieldS to Breweries: Trapezium BrewingWaukeshaw Development, INC.
May 20, 2015Slide2
INTRODUCTIONAt the end of 2015, Waukeshaw will have attracted more than $75M to historic redevelopment projects in Virginia and North Carolina.
All market-rate offerings when completeAll done under the guidelines of the:
Department of Historic Resources
National Park ServiceSlide3
THE
Challenges
of untested markets
Right out of the gate, the odds are against small town development
(sometimes for reasons you wouldn’t expect):
Little or no market rate rent established/tested
Appraisers are left shrugging
Comps non-existent, or difficult to ‘normalize’ (this equity is important)
“External Obsolescence” – you are penalized for being where you are
Cap Rates are unreasonably high (small number, huge mover)
Lenders are scarce, or scared – Speculative nature,
esp
biz
Community bankers do not understand, or are unwilling, to consider tax credits as equity
Limited knowledge in the local developer pool (tax credits are hard)
Limited ‘Exit Opportunities’
– Non-recourse financing options, institutional BuyersSlide4
How to get it doneLeverage existing data in similar marketsWe use appraisals against appraisersTell story of success in other similar marketsSeek out-of-market, or sympathetic lenders (VHDA, VCC, LISC, HUD*)
Lever whatever strengths exist for ideas and branding opsCreate equity through partnerships with municipalityParking agreementsBrick and mortar equity (building for $1)
Grant conduits
Backstops for commercial leases
Special Structures (long term leases, for IRF for ex)
EDA financing – all/partial
AbatementsWE MUST SHOW AND PROVE IT CAN BE DONESlide5
James E. Mallonee H.S.Hopewell, VASlide6
HOPEWELL LOFTS Hopewell, VASlide7
Interiors . . . Slide8
combined warehouse site downtown Petersburg, VASlide9
Mayton Transfer LoftsPetersburg, VASlide10
Plantation tobacco buildingBlackstone, VASlide11
Blackstone LoftsBlackstone, VASlide12
SOUTHERN EXPRESS building PETERSBURG, VASlide13
SOUTHERN EXPRESS LOFTSPETERSBURG, VA
Coffee Shop & 8 Market-Rate Apartments$1M Total Investment
Completed in 2009Slide14
CASE STUDY: THE Henry Hotel$3.2M – from Various funding sources:Historic Tax Credits – State and FederalDHCD/Main Street Program
Enterprise Zone Real Property GrantBank Financing
IRF GRANT
Other city incentivesSlide15
Henry HotelassessmentSlide16
Completion– June 2014Slide17
Whirligig Station Wilson NC $11M, mixed use Slide18
Vollis Simpson – Whirligig Park/Visitor CENtErSlide19
Hopewell Seaplane baseA new ‘airport’ on the waterSlide20
Trapezium Brewing – P’Burg VA Future Home Slide21
Groundbreaking June 15Slide22
Trapezium’S “Pre-Shell” Cond. $4.8M total overall complexSlide23
Lots to doSlide24
(Brewery Finances Only): Hard Cost, Building: $1.5MEquipment Cost: $1.4M (some qualifying equip in here)TOTAL: $3.1M, comprising . . . $2.2M Bank Financing$600K IRF funds, loan form 20 years, 2.5%Balance in HTC and Developer EquityTanks from Deutsche, Charlotte NCState/Fed HTC syndication net: $700,000$300K Overage used for Operational StartupPlan of Finance Slide25
Environmental ConcernsSlide26
Trapezium Brewing will be a 30BBL BrewhouseGoal of 1500 bbl in year one, 4000bbl in year 2Total Capacity of Building: 40,000bbl annualTap Room will serve brick oven pizza, large open deck and patio areaWill accommodate Families and ChildrenCapitalize on Petersburg’s upswing: Tourism, film, growing residential base
Beer flows June 2016