NMTC Case Study for Claussen Bakery

Project

The Claussen Bakery Project is the adaptive reuse of a former family-owned bakery built in the West End of Greenville in 1930. For decades, the bakery contributed to the industrial and commercial development of downtown Greenville. Closed in 1973, the historic building lay vacant for years and was ultimately gutted due to significant structural issues. In 2009, a real estate partnership , 400 Augusta Street Investors, LLC, acquired the property. In 2014 they began renovating the building and surrounding land to accommodate office and other commercial business. McMillan Pazdan Smith Architecture serves as the anchor tenant, occupying the second floor, while 16,500 square feet of first floor commercial space will be available to small businesses. Completion of this project will benefit the City of Greenville and community at large in several significant ways: the removal of an obsolete commercial building along a busy corridor; the adaptive use of an historic building; preservation of the area’s architectural heritage; and the integration of high-density new construction with high-quality architecture.

Community Outcomes

The reuse of the Claussen Bakery building will have a positive impact on the continued economic viability of Greenville’s maturing city and surrounding communities. Situated at the edge of the Greenville Central Business District (CBD), the property is located along a stretch of Augusta Street that is on the precipice of redevelopment. With South Main Street pushing growth from the north, the city is facilitating a makeover of government-assisted housing immediately to the south. The Claussen Bakery Project is a natural extension of Greenville’s thriving downtown and provides a perfect opportunity to repopulate this building with tenancy that connects it to the predominantly commercial/retail CBD.

The project supports 243 direct jobs, 126 of which are permanent and 117 are construction. To encourage the accessibility of jobs to LIC residents, the borrower requires tenants to recruit and hire LIC residents by sharing marketing information for job openings through the nearby neighborhood associations. In addition, the anchor tenant is sponsoring an internship program in the field of architecture and will recruit students from neighboring Greenville High School to participate Throughout the seven-year NMTC compliance period, the project will provide favorable lease terms to its first floor tenants, including below-market rents. These tenants are projected to be small and local businesses.

TOTAL PROJECT COST:
$6,400,000

NMTC ALLOCATION:
$5,000,000

FINANCING COMPLETE:
December 2014

PROJECT SPONSOR:
400 Augusta Street Investors, LLC

CDE:
The Innovate Fund

NMTC INVESTOR:
Capital One Bank, N.A.

LEVERAGED LENDER:
Claussen Lender, LLC

ADDRESS:
400 Augusta Street
Greenville, SC

CENSUS TRACT:
45045000500

COMMUNITY OUTCOMES:
35,527 SF
243 Direct Jobs

LOW-INCOME COMMUNITY:
Poverty Rate: 36.8%
Median Family Income: 55.9% Unemployment Rate: 11.8% Unemployment Ratio: 1.49x State/Local Economic Zone ARC Distressed Area