ST. LOUIS, Aug. 28, 2019 /PRNewswire/ -- Twain Financial Partners has leveraged its ability to provide both C-PACE financing and historic tax credit equity in connection with the rehabilitation of the historic Farmers and Mechanics National Bank Building in Fort Worth, Texas into a 226-room Kimpton Hotel. Twain provided $20.7 million in state and federal historic tax credit equity and $5.8 million in C-PACE financing to the project. The combination of Twain's C-PACE and Historic Tax Credit investment represents more than 30% of the project's total capital stack.
"Pairing C-PACE financing and historic tax credits together on this project helped showcase Twain's wide breadth of services and expertise in complex real estate transactions," said Nick Maglasang, Vice President at Twain. "We are increasingly seeing C-PACE and historic tax credits used together in historic rehabilitation projects and Twain is uniquely situated to provide both sources of capital to these transactions." While this represents Twain's first joint C-PACE and HTC transaction in Texas, Twain has successfully provided both C-PACE and historic tax credit equity to several other transactions throughout the country.
Commercial Property Assessed Clean Energy (C-PACE) financing is a state-based program allowing private lenders, like Twain Financial, to provide long-term, fixed rate financing for energy efficient components of new construction and historic rehabilitation projects. The financing, which can often fund up to 20% of construction costs, is repaid as a special assessment on the property and collected in the same manner as property taxes. State and federal historic tax credit programs encourage private investment in the rehabilitation of historic buildings by permitting eligible projects to claim a percentage of certain rehabilitation expenses as a credit against their federal tax liability.
Twain Financial Partners is an investment management firm with more than $4 billion in assets under management in the public-private partnership space. The firm works with a wide variety of investment types, specializing in C-PACE, tax credit, structured debt and real estate transactions. Twain works closely with financial institutions, corporations, and high-net-worth individuals to structure and manage investments that offer both attractive economic return and social benefits.
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