New York Business Journal, Dec 12, 2018
Cherrytree Group, LLC, has funded $900,000 in pre-development financing to rehabilitate a historically designated former school in Shelbyville, Indiana. Cherrytree completed this financing through its affiliate, Hampton Financial Partners.
Using a fund opened earlier this year in response to the U.S. government’s initiative to designate “Opportunity Zones” in distressed areas of the nation, Cherrytree partnered with developer Purple Vetech Properties of Santa Rosa, CA to conduct the improvements and rehabilitation of the 49-unit Shelbyville High Apartments. To complete the project, Purple Vetech is utilizing federal low-income housing tax credits issued by the Indiana Housing and Community Development Authority (“IHCDA”), federal historic tax credits, IHCDA private activity bonds, and a State of Indiana Housing grant.
The rehabilitation plan restores the 107-year-old building with construction intended to mirror historic details from when it served as the town’s junior and senior high school from 1911 until the early 1990s. The building is one of three in the complex which are listed in the National Register of Historic Places as well as with the Indiana State Historic Preservation Office.
Cherrytree President Warren Kirshenbaum said the project was the recipient of larger than usual grants of tax credits from the Federal government; as it was not only a recognized historic structure but also has a past and future use as affordable housing for Indiana residents.
The project, which received a total of $2.4 million in tax credits to offset development costs, “shows the power of preservation in America’s small towns through the use of tax credits,” said Kirshenbaum. Tax credits allow developers to reduce development costs to preserve historic structures, and provide affordable housing to places where it is most needed.
“We are proud to be part of the revitalization of this landmark that will also meet the housing needs of many Indiana residents,” Kirshenbaum said.
The project boasts 25 one-bedroom apartments, 22 two-bedroom units and two three-bedroom units. When renovations are finished, Kirshenbaum said the building will be a place where low-income residents can live in healthier, more modern, and unique private apartments supported by an indoor community space and amenities, as well as outdoor grounds that help create a vibrant community.
The Cherrytree Group offers tax credit consulting, brokerage and syndication services to developers as well as to individual and institutional investors. Cherrytree applies for, secures, and monetizes available federal and state tax credits. The company focuses primarily on the Massachusetts Brownfields Tax Credit, Federal and state historic rehabilitation tax credits, low income housing tax credits, and renewable energy tax credits such as the Federal solar investment tax credit.