Wall Street Capital Partners will evaluate your existing project to see ways we can utilize a variety of strategies including land conservation to provide projects the necessary capital to launch, while providing the green space most urban communities desire. The following are case studies of how this methodology can and has been used.
Tower Place Buckhead (Atlanta, GA)
In the heart of Atlanta’s financial district sat a 0.85 acre site zoned for the development of a 24 story hotel and residential tower. Over the last few years 750,000 square feet of office space had been added to contiguous and neighboring parcels by this same developer. The decision was made to conserve this site which sat while the market would not support this project. Conservation of the site resulted in approximately $8M in federal deductions and state tax credits. The investor benefit is the participation in a new project on Peachtree Street, a 63,000 square foot office building and surrounding acreage. A building that will probably be tore down and developed into a Class-A high-rise.
Millennium Park, Chicago Illinois
Where Millennium Park sits was 24 acres of commuter rail yards, some surface parking and an undeveloped waste land. Like most parts of Chicago, the highest and best use is vertical construction. However the decision was made to create an urban oasis to maximize value in a different way. The park has brought in $78M tax revenue produced by $1.4B in tourist spending. This project which cost $270M was mainly financed by construction and TIF bonds; however $160M was generated from the private sector. More could have possibly been generated quicker from the private sector utilizing a Conservation strategy. Most major cities would love to have this model replicated in their urban cores.
Centennial Olympic Park, Atlanta Georgia
The land between Atlanta’s former Omni and the Coca-Cola headquarters was a depressed urban center with acres of undesirable public housing. Prior to the Olympics this land once controlled by The Coca-Cola Company exercised a conservation strategy to greatly increase the site value while creating an amenity for the citizens of Atlanta. As part of the development, a new hotel, new mixed income housing was created as well as for sale town homes. This once depressed area has become a desirable part of the urban core. After Centennial Olympic Park was built, adjacent condominium prices rose from $115 to $250 per square foot.
The Advantages of Conservation vs.
Other Tax Credit Strategies
- Shortest Claw-back period of all RE Tax Credit strategies
- Lowest Audit percentage of all RE Tax Credit strategies
- No long term project stabilization period
- Potential insurance coverage on valuations
- Claw-back minimized to difference in valuation
- $53B in this category of deductions are taken annually