Training

Mixed-Use Real Estate Finance

ED512 - Mixed-Use Real Estate Finance.  Neighborhoods are at their best when “ Main Street ” pulses with the activities that bring a community alive—residential, retail, entertainment, services, public facilities and common areas.  Older Main Streets have special opportunities for adaptive reuse—with buildings that are ideally suited to retrofitting multiple uses in one structure.  Cities and towns undergoing redevelopment in their downtowns often view mixed-used development as a way to catalyze Main Street, energizing it with shopping, dining, culture and entertainment.  There are several financial tools available for Main Street redevelopment and if brought together in the right way, for the right uses, they can do the job.  This course explores the following topics:
 
Mixed-Use Development Challenges

• Commercial real estate revitalization
• Community facilities on Main Street
• The community perspective on revitalization
• Inventory:  what do you have to work with?
• Thinking outside the box for adaptive reuse

Mixed Financing:  The Right Recipe

• Real estate financing process
• Estimating project costs
• Projecting the developer’s pro forma
• Determining debt capacity
• Measuring equity attracted
• Quantifying the financing gap
• Closing the gap

Taxes and Real Estate Development

• Cash flow after tax
• Depreciation
• Historic Rehabilitation, Low-Income Housing and New Markets Tax Credits

Financing Tools for Mixed-Use Development

• Debt and equity vehicles
• Programs:  CDBG, CDBG Float Loan, Section 108 and tax-exempt bond financing
• Other Structuring Tools:  tax increment financing, ground leases, tax abatement and payment in lieu of taxes

Prerequisite:  None