$6,500,000 MILLION FINANCING SECURED FOR MIXED-USE CONSTRUCTION PROJECT IN DOWNTOWN RICHMOND, VIRGINIA
Richmond, VA, October 15, 2009 -- Richmond-based John B. Levy & Company, Inc. is pleased to announce the completion of financing for the Haxall Building located in downtown Richmond, Virginia. The property is located just a short walk from the James River and the eastern continuation of the canal walk. The three buildings that comprise Haxall View were originally a cafeteria and part of the cigar manufacturing department of the Edgeworth Tobacco warehouse complex. Haxall is a 40,000+ square foot mixed-use project with loft apartments above retail shops. The retail space allows outdoor seating in a private courtyard, with parking on the lower level.
The transaction is a $6,500,000 loan which has a 2-year interest-only period followed by a 3-year term amortizing over 20 years. This will allow the developer time to stabilize leasing on the building. The loans proceeds were used to payoff the existing loan at a discount as well as fund reserves for future carry and lease-up.
The former lender in the transaction was not in a position to see the building through to stabilization. Our firm was able to negotiate a discounted payoff which ultimately was favorable to the former lender as well as the borrower, according to John Levy.
Development along the canal in Richmond has flourished in part due to the creative use of historic tax credits, said Levy. This region has a higher rate of utilization of historic tax credits than other urban areas, said Levy. Many firms shy away from using them due to onerous administrative burden, but here they become a but for incentive.
Located at 2101 East Main Street, Haxall is a short walk from the river and the eastern continuation of the canal walk. The Great Shiplock Park, where a historic lock connects the Haxall canal with the James River, is also around the corner. Loft residents are able to take advantage of the amenities of the area without the need of a car. These amenities include a grocery store, drug store, retail shops and many of the citys finest restaurants. Restaurant and retail tenants serve an existing customer base of young urban professionals supplemented by visitors to the Canal Walk, Shockoe Slip, Rocketts Landing, Great Shiplock Park and the Farmers Market.
John B. Levy & Company is based in Richmond and has structured financing for many of the projects in the historic district including The Turning Basin Building, the Canal Crossing Tower and Annex, and the Lady Byrd Hat Building and is familiar both with the market and the nuances associated with historic tax credits.