Tax Credit Marketplace, LLC announces $7 million fund closing

Greenville, SC-based Tax Credit Marketplace, LLC (“TCM”) announces the successful closing of the 2018 SC Revitalization Tax Credit Fund, LLC (“2018 Fund”).

The 2018 Fund invested in 13 qualifying development projects in 7 different regions of South Carolina. The projects’ collective development costs was estimated to be $70 million, generating approximately $7 million in SC income tax credits. The 67 investors in the 2018 Fund utilized these tax credits to reduce their SC tax liability. The 2018 Fund included projects from multiple asset classes, including retail, medical office, self storage, hotel, luxury rentals and renewable energy. In addition to state credit projects, TCM also invested in multiple Federal Historic credit projects in 2018.

“TCM has dozens of projects under review for its 2019 and 2020 funds and is currently seeking additional qualifying projects statewide in which to invest,” according to Josh Workman, Chief Operating Officer and Fund Manager for TCM. "A few of our projects slipped into 2019, due to weather and construction delays," added Workman. “Based on an increasing investor demand, additional tax law changes and development momentum, we anticipate the 2019 and future funds to be significantly larger,” says Workman.

State and Federal tax credit rules have recently changed. The most recent changes are the extension of the SC Abandoned Buildings Act from 2019 to 2021, rules for combining Abandoned Building and Historic credits in the multi-family asset class, and the loosening of the footprint rule under the Textile Credit Act. According to Workman, “It’s important for developers to understand these changes and how their ‘on the board’ projects may be impacted. We help developers navigate the rules and the marketplace to bring the most benefit to their projects”.

Developers and property owners understand that they can create a competitive advantage by properly utilizing the SC Revitalization Acts (“Acts”) and Federal Rehabilitation Tax Credits to attract additional capital for their projects. These projects often generate more Tax Credits than a developer or property owner can personally utilize. TCM is able to offer developers/property owners the opportunity to monetize these excess Tax Credits, resulting in additional project cash flow that would otherwise be missed.

The South Carolina Acts encourage private investment to alleviate adverse real estate conditions such as abandoned, textile and historic buildings. The Acts also make it easier for developers and communities to enhance nearby property values, create local jobs, and form the “sense of place” that has become such an important factor in deciding where we live, work and play. Effectively, South Carolina has decided to underwrite the rebirth and redevelopment of its cities and towns.