Opportunity Zones
Savage & Associates has been at the forefront advising clients on how to utilize this new federal tax incentive, which encourages long-term investment in economically distressed urban and rural communities by giving investors the option to defer taxes on capital gains by investing in designated Opportunity Zones.
We represented the developer of Golaski Labs, a $7.2 million, 40,000-square-foot planned mixed-use development in Philadelphia’s Wayne Junction neighborhood. When complete, the one-acre site will include new affordable housing, a restaurant, architecture and design offices, and co-working space for local start-ups.
New Markets Tax Credits (NMTC)
We have been active in NMTC since the initial round of allocations in 2000. Investors receive a tax credit for placing equity in designated Community Development Entities (CDEs). To date, Savage & Associates has closed more than $1 billion in NMTC transactions. · We represented a CDE in the formation of a partnership to facilitate a debt and equity investment in a renovation of the oldest African American-owned shopping center in the country. · We represented a CDE in the transformation of a 1-million-square-foot abandoned warehouse in Pittsburgh into a 21st century urban destination with office and retail spaces. The “Highline” project will be LEED Silver certified and create 800 full-time jobs. · We represented a CDE in the renovation of approximately 160,000 square feet at the former Connelly Trade School in Pittsburgh for reuse as an Energy Innovation Center focused on advancing energy efficiency, alternative energy and energy production solutions.
HUD/Multi-family Financing
As special closing counsel to the U.S. Department of Housing and Urban Development, Savage & Associates closed more than 250 HUD multifamily and healthcare facility loans. We are well versed in all HUD regulations, including the revised Multifamily Accelerated Processing (MAP) Guide. · We represented a CDE in the renovation of the former Rogers School in Garfield for reuse as the Environmental Charter School. This school will enroll 400 students, including at least 10 percent who qualify as low-income by federal standards. · We represented the CDE in a project to expand a nonprofit social services building and community center in Pittsburgh’s East End. The 60,000-square-foot space will include additional areas for job training, employment programs, nutritional education, organic gardening and other food-support programs.
Low-Income Housing Tax Credits (LIHTC)
Arguably the most important tool for driving construction and rehabilitation of affordable rental housing in the U.S. today, Savage & Associates works with developers and lending agencies to negotiate the assignment of low-income housing tax credits for qualifying projects. · We represented a real estate developer in the construction of a 60,000-square-foot 66-unit apartment building for homeless veterans. We analyzed and harmonized loan documents from the senior lender, Pennsylvania Housing Finance Agency, multiple Federal Home Loan Banks and a Home Depot grant.
Historic Tax Credits
Launched more than 40 years ago, this tax credit program continues to draw private sector investment toward the rehabilitation and re-use of historic buildings by allowing participants to claim improvement expenses against their federal tax liability. Savage & Associates advises on incorporating Historic Tax Credits into the capital stack. · We represented a real estate developer in connection with an Historic Tax Credit/New Markets financing to turn a run-down outlet mall in Reading, PA into affordable housing and new commercial space. We assisted with tax credits, loan agreements and corporate formation. · We represented the developer of Eastern Lofts, an $8 million project in Brewerytown, Philadelphia, that converted a long-decaying building into 37 loft-style rental apartments, childcare center, coffee shop and office space. The Historic Tax Credits were difficult to secure and required the firm to negotiate a novel agreement with the funding authority.
Combination Financing
In addition to the tax credit programs listed above, Savage & Associates has helped clients effectively utilize and combine other funding sources, including USDA loans, BEDI Grants, CDBG grants, Transportation-Oriented Development credits and other federal, state and municipal subsidies. Savage & Associates is able to leverage diverse funding mechanisms through clear and workable deal structures. · We represented a CDE in the assemblage and redevelopment of six acres of blighted commercial and publicly-owned property in East Liberty, Pittsburgh. The project connects critical existing transportation infrastructure and allows for the development of 360 multifamily housing units and 43,000 square feet of retail and commercial space. · We represented the Redevelopment Authority in connection with a HUD 108 leverage loan and NMTC Investment Fund to finance a Target store in East Liberty, Pittsburgh. The firm handled loan documentation, intercreditor and HUD collateral agency issues, and worked directly with HUD to structure the financing and timing.
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