Case Study
Case Study
Bringing a Kansas City building back to life
Client need
Kothe Real Estate Partners, LLC, (Kothe) develops commercial properties throughout the Midwest. As one of its primary projects, Kothe partnered with Great Lakes Management Group and KP Property Development (the Development Team) to revitalize a historically significant dormant Kansas City building into a new mixed-use development that would include a Hotel Indigo with 118 boutique hotel rooms and nearly 30 apartment units.
Due to the location, there was an opportunity to utilize a variety of financing programs to build the project’s financing package. Coordination of Historic Tax Credits, New Markets Tax Credits, Brownfield Tax Credits, Property Assessed Clean Energy (PACE) financing and a property tax abatement was needed to make the project possible. The Development Team partnered with Baker Tilly Capital to source financing and the tax credit investors to complete the complex capital structure for the development.
Our solutions
The incentives advisory team within Baker Tilly Capital worked closely with the Development Team to develop and execute a comprehensive capital structure to bring the project to life. Utilizing specialists in each of the eligible financing areas, we were able to provide customized advisory in the areas of Historic Tax Credits, New Markets Tax Credits, PACE, tax abatements and structuring overall bank debt.
Results
Through a collaborative approach with the Development Team, we were able to provide a comprehensive financing package that utilized all eligible programs. Through this collective approach, the project’s capital structure benefited from more than $18 million in various credit and incentive programs. The new property brings life back to a historically significant dormant building in Kansas City and provides new opportunities for the local economy.
We found the specialization that Baker Tilly Capital brought into each available financing tool critical in the overall success of our project. With so many moving parts during a development, it is helpful to have a team with deep knowledge in the overall financing structure to work closely with.John Kothe, Founder, Kothe Real Estate Partners, LLC
For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.
