BOSTON--(BUSINESS WIRE)--Cherrytree Group, LLC, a tax credit advisory firm, announced that it has secured $2.4 million in Federal tax credits and funded $900,000 in pre-development financing for the renovation of a historic former school in Shelbyville, Indiana.
Using a fund opened earlier this year in response to the U.S. government’s initiative to designate “Opportunity Zones” in distressed areas of the nation, Cherrytree partnered with developer Purple Vetech Properties of Santa Rosa, CA to refurbish the building, which 25 years ago had been converted from a school to to an apartment complex. Purple Vetech is using Federal low-income housing tax credits issued by the Indiana Housing and Community Development Authority (IHCDA), federal historic tax credits, IHCDA private activity bonds, and a State of Indiana Housing grant.
The rehabilitation plan will restore the 107-year-old building with construction intended to mirror historic details from when it served as the town’s junior and senior high school from 1911 until the early 1990s. The building is listed in the National Register of Historic Places as well as with the Indiana State Historic Preservation Office.
Cherrytree President Warren Kirshenbaum said the project received larger than usual grants of tax credits from the government; as it was not only a recognized historic structure but also has a past and future use as affordable housing for Indiana residents.
The project, made possible by the tax credits, “shows the power of preservation in America’s small towns through the use of tax credits,” said Kirshenbaum.
“We are proud to be part of the revitalization of this landmark that will also meet the housing needs of Indiana residents,” Kirshenbaum said.
When renovations are finished, Kirshenbaum said the building will be a place where low-income residents can live in healthier, more modern, and unique private apartments supported by an indoor community space and amenities, as well as outdoor grounds that help create a vibrant community.
The Cherrytree Group offers tax credit consulting, brokerage and syndication services to developers as well as to individual and institutional investors. Cherrytree applies for, secures, and monetizes available federal and state tax credits. The company focuses on Federal and state tax credits for historic rehabilitation, low-income housing, renewable energy and clean-up of contaminated land.