In today's Richmond Times-Dispatch, a front page story announced the redevelopment of the former Reynolds Metal manufacturing facilities north of the river into apartments and ancillary retail. That this has been coming is common knowledge in the real estate community, but perhaps not well-known outside of those circles.
This development is being described as "the linchpin" that Richmond has been waiting for for over 15 years. I think it's an amazing opportunity, and I'm glad to see WVS and Fountainhead Properties, both experienced players, running this show. WVS is a Northern Virginia developer responsible for The Village at Rocketts Landing, and Fountainhead is a local developer of Artworks, Manchester Flats, and numerous other projects in the Manchester and Downtown areas.
I am sure this is a state and federal tax credit renovation, meaning the developers can recover 45% of the value of "qualified renovation expenses" ("QREs"). The newspaper describes this as a $35M project. Now, that number may include the acquisition cost ($7.3), and not all renovation expenses are QREs, but for the sake of making the math easy,because I suck at math, let's just assume they are. So 45% of $27.7M = $12.46M. WAY more than chump change.
Forget Justin French and his misuse of the tax credit programs. I hope Richmond realizes just how lucky we are to have one of the most generous state tax credit programs in the country, allowing 25% recovery of QREs. You put the state tax credits together with the federal tax credits (20%) and it makes these deals work.
So good luck to WVS and Fountainhead, congratulations on getting the North Plant deal closed, and we can't wait to see the finished product. I know we have just won in a landslide the title of "The Next Austin," up-and-coming hipster city, but I'm hoping we end up looking like another Great State of Texas city, San Antonio, with their thriving canal walk.
P.S. I just learned how to add pictures! How exciting. I know I have just outed myself as a tech-idjit, but I'm so proud I just have to give myself a virtual pat on the back nonetheless.