Greenville, SC-based Tax Credit Marketplace, LLC announced the successful closing of the 2021 SC Revitalization Tax Credit Fund, LLC (“2021 Fund”).
The 2021 Fund invested in 14 qualifying development projects in 8 different regions of South Carolina, including Anderson, Camden, Charleston, Columbia, Myrtle Beach, Rock Hill, Simpsonville, and Spartanburg. The projects’ collective development costs exceeded $60 million, generating over $13 million in SC income tax credits. The 2021 Fund investors utilized these tax credits to reduce their SC tax liability. The 2021 Fund included projects from multiple asset classes, including retail, office, hospitality, multi-family, and mixed use. In addition to the fund’s state abandoned building, historic and textile credit projects, TCM placed $400,000 in Federal Historic tax credits, $200,000 in Angel Investor credits, and was engaged by numerous developers for consultation on a variety of development projects.
“We have dozens of projects under review, with completion dates ranging from 2022 into 2025, and are currently seeking additional qualifying projects statewide in which to invest,” says Josh Workman, Chief Operating Officer and Fund Manager for TCM. “ We anticipate our future funds to be significantly larger based on multiple factors; consistent investor demand and developer momentum, increased migration to South Carolina, the recent extension of the Abandoned Building Act to 2025, and the newly adopted Workforce and Senior Affordable Housing Credit.
Property developers create a competitive advantage by properly utilizing the SC Revitalization Acts (“Acts”) and Federal Rehabilitation Tax Credits to attract additional capital for their projects. These projects often generate more tax credits than a property developer can personally utilize. TCM offers these developers the opportunity to monetize these excess tax credits, resulting in additional project cash flow that would otherwise be missed. "We help our development partners navigate the rules and the marketplace to bring the most benefit to their projects” says Workman.
The South Carolina Acts encourage private investment to alleviate adverse real estate conditions such as abandoned and historic buildings, and former textile sites. The Acts also make it easier for developers and communities to enhance nearby property values, create local jobs, and form the “sense of place” that has become such an important factor in deciding where we live, work and play. South Carolina, through this legislation, is effectively underwriting the rebirth and redevelopment of its cities and towns. According to Workman, "more than 60% of our Funds' investments to date have Main Street or downtown addresses".
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