New Markets Tax Credit | BakerHostetler

The New Markets Tax Credit (NMTC) program has sparked billions of dollars of investment, transforming low-income communities and achieving the business objectives of owners, developers and sponsors.

Represented NMTC leverage lender group in connection with the development of a $25 million Ace Hotel to be located in East Liberty, PA. The project was financed with federal NMTCs and federal HTCs.
Represented joint venture between a Brazilian company and a U.S. private equity firm in connection with a $42 million federal and a $10 million Mississippi state NMTC financing to develop a $200 million silicon metal production facility in Mississippi; the project received senior financing from a German financial institution and incentives from the state and local government.
Represented developer in connection with a $30 million acquisition, construction and development of a 153-room Marriott Hotel located in the University Circle area of Cleveland, Ohio. The project was financed with federal and state NMTCs and required leveraging of multiple layers of conventional debt, HUD 108 financing and “tax increment” financing.
Represented a Cleveland, Ohio, non-profit performing arts center in the $40 million acquisition and rehabilitation of a historic five-story office building to be utilized by multiple tenants, including several non-profit organizations; the project was financed with the assistance of both federal and state new markets tax credit equity as well as federal and state historic tax credit equity. Multiple CDEs participating in the NMTC financing and bond financing proceeds were used to leverage the credits.