2020 SC Revitalization Fund Closed at $11 million

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January 19, 2021
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Greenville, SC-based Tax Credit Marketplace, LLC (“TCM”) announces the successful closing of the 2020 SC Revitalization Tax Credit Fund, LLC (“2020 Fund”)

 

The 2020 Fund invested in 11 qualifying development projects in 8 different regions of South Carolina, including Camden, Charleston, Columbia, Greenville, Myrtle Beach, Simpsonville, Spartanburg, and West Columbia. The projects’ collective development costs exceeded $50 million, generating over $11 million in SC income tax credits. The 2020 Fund investors utilized these tax credits to reduce their SC tax liability. The 2020 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 $2.9 million in Federal Historic tax credits, $286,000 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 for its 2021 and 2022 funds and are currently seeking additional qualifying projects statewide in which to invest,” says Josh Workman, Chief Operating Officer and Fund Manager for TCM. “Based on steady investor demand, recent and foreseeable tax law changes and development momentum, we anticipate 2021 and 2022 funds to be significantly larger. Given the effect of Covid-19 lockdowns on small businesses in 2020, the use of revitalization credits remains vital in re-invigorating South Carolina’s communities.”

 

Property developers can 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 developers 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, "historically, nearly 50% of our Funds' investments to date have Main Street or downtown addresses".