Buoyed by its real estate success in Central Virginia, Octagon Partners has raised a $30 million fund to invest in revitalizing tax credit developments throughout the country. The fund, called Octagon Capital Partners (OCP), seeks to allocate equity to 80,000+ sq ft projects in vibrant college towns or university sub-markets of metropolitan areas. Where others turn their eye at vacant schools, decrepit warehouses & industrial buildings, neglected historic buildings, or abandoned corporate campus, we see opportunities.
To date, OCP has acquired six properties for rehabilitation:
1) GYPSY HILL PLACE – STAUNTON, VA
2) 222 MITCHELL – ATLANTA, GA
3) THE MJV MILL – GREENSBORO, NC
4) OLD HARDWARE STORE, DOWNTOWN MALL – CHARLOTTESVILLE, VA
5) 459 LOCUST AVE (PREVIOUSLY MJ HOSPITAL) – CHARLOTTESVILLE, VA
6) MACY’S BUILDING – MISSOULA, MT
Tax Credit Syndication
Octagon Partners connects developers who need to sell state historic tax credits from real estate projects with investors who wish to offset state income tax. In 2009, Octagon Partners affiliate Virginia Tax Credit Partners purchased $6 million of Virginia State Historic Tax Credits for qualified investors. This program saved investors almost 25% on their state taxes and provided millions in equity for Virginia real estate developments.
While in previous years we have provided these services in only the Commonwealth of Virginia, Octagon Partners is building a network of buyers and sellers in all states that have substantial state historic tax credits. Through its own real estate investments across the country, Octagon Partners has gained the confidence of larger corporations and municipalities to engage Octagon for its development services.
Octagon can assist with all aspects of the development process including: locating and financing the acquisition of prospective sites; determining construction methodology; finding creative financing solutions that include energy credits, New Market Tax Credits, enterprise credits, relocation grants, job-creation subsidies, ARRA Facility Bonds, etc., to maximize investment; and assembling and managing general and subcontractors, architects, and engineers.