Small Deal Fund
The National Trust for Historic Preservation's for-profit subsidiary, the National Trust Community Investment Corporation (NTCIC) entered into a partnership with Tax Credit Capital, LLC of New Orleans to form the National Trust Small Deal Fund (SDF). SDF provides a unique service within the historic tax credit industry by investing in very small historic tax credit projects generating as much as $650,000 in tax credit equity (about $3.5 million in total development costs) or as little as $200,000 in tax credit equity (about $1.2 million in total development costs). Such projects are typically overlooked by conventional equity syndicators because the developer's added transaction costs are a high percentage of the investment opportunity generated by the historic tax credit.
SDF is able to invest in these smaller deals by standardizing its investment terms and documents, minimizing investor risks, reducing its due diligence requirements and keeping its closing costs very low. The National Trust Small Deal Fund uses a delayed equity pay-in model wherein the first major equity payment is deferred until final (Part 3) project approval is granted by the National Park Service.
The National Trust Small Deal Fund is capitalized by Chevron Texaco. As an SDF partner, NTCIC helps locate and refer deals through its national network of historic preservation partners including its Community Revitalization Networks, Historic Hotels of America, National Trust Regional Offices and its State and Local Partners Program. To date, SDF has committed or closed on 42 projects totaling approximately $22.5 million in federal historic tax credits.
SDF operates in all 50 states and is also able to purchase state historic credits in Virginia, Maryland, Rhode Island, Michigan and Louisiana. All types of properties, including hotels, offices, restaurants, entertainment uses, cultural and nonprofit facilities, retail and mixed-use projects, are eligible.
For more information see the link below.