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Quick Facts

Project Name
McBee Station
CDE
Wachovia Community Development Enterprises, LLC (WCDE)
Total Development Cost
$33.7 Million
WCDE ALLOCATION
$16,567,500
Location
402 McBee Avenue
Greenville, SC 29601
NMTC Consultant
taxadvantagegroup, llc
Developer
Wallace Enterprises
Leveraged Lender
Wachovia Bank
NMTC Investor
Wachovia Bank
Permanent Jobs
189 Direct
Construction Jobs
227 Direct
Low-Income Community
Poverty Rate 30.2%
Local TIF District
Financing Complete
January 2008

McBee Station


Greenville, SC

The Project

McBee Station is an infill mixed-use development that includes 197 apartments, 22 condominiums, a one-acre bank site, 500 parking spaces in a two-level garage, 165 surface parking spaces and 79,716 square feet of retail space, anchored by Publix and Staples.

As the first major development located off the Main Street corridor and adjacent to the Haynie-Sirrine neighborhood, the project served as a bridge between the Haynie community and downtown. In fact, a portion of the overall project involved creating a road between the site and the Main Street area to alleviate existing hazardous pedestrian traffic issues. Additional financial participation by the City of Greenville addressed infrastructure improvements to the site (streetscape, traffic signals and storm water components), directly answering community issues noted in the Haynie Master Plan.

The development enabled the first grocery retailer to serve the downtown residential community and the first office supply retailer to serve the downtown business community. Mayor Knox White of Greenville said, “A grocery store is needed downtown to serve about 2,000 people who live in the central business district, as well as neighborhoods bordering downtown. A downtown grocery store is a must.” At closing the project was estimated to create 227 construction jobs and 189 permanent jobs in a LIC that demonstrated a 30.2% poverty rate, while serving as a true catalyst project for the City.

THE FINANCING

The $16.5 million NMTC financing provided take out construction financing from an unaffiliated third party lender. At closing the NMTC transaction consisted of four separate loans to Wallace Enterprises, including two leveraged loans and two tax credit loans. Wachovia provided senior debt for one leveraged loan while Wallace provided additional developer equity for the second leveraged loan.

Separate from the NMTC component, Wallace provided $4 million of equity to the project, and the City of Greenville contributed $2.2 million of infrastructure improvements to the site. Without the NMTC equity, this project would not have secured enough capital to move forward. In fact, the project developer did not take any development fees in order to bring the project to fruition.

“I was recently reflecting on our success at McBee Station and the importance of the financing that you structured for the commercial components of the project. As you know McBee Station was a physically and financially complex structure. taxadvantagegroup surpassed the owner’s expectations to bring much needed capital to the project. Not only did taxadvantagegroup develop a creative debt solution for our needs, it continued to refine and improve the capital structure as obstacles and opportunities arose prior to closing. At every turn it was clear that taxadvantagegroup understood the objectives and motivations of the owners and was able to match them to the corresponding needs of the capital providers.”

– J. Russ Davis, Jr., President of TDL WCOT Greenville, LLC

taxadvantagegroup (tag) is one of the country’s most successful consulting firms specializing in New Markets Tax Credits, a powerful financing tool for community development projects in the United States.

Since 2004 tag has helped revitalize low-income communities across the U.S. by securing low-cost, flexible financing for high impact projects and providing a full suite of NMTC management services.

For more information contact:

Tammy C. Propst | 864.271.2737 | tpropst@taxadvantagegroup.com