KANSAS CITY, Mo.--(BUSINESS WIRE)-- As a boost for both jobs and affordable downtown housing, U.S. Bank was able to secure a complex, yet innovative $24.2 million financing package for The Alexander Company which it will use to convert the former Federal Courthouse building in Kansas City, Missouri, into the Courthouse Apartments. Plans call for the work to begin immediately, with an eye for completion before summer of 2011.
Located at 811 Grand Boulevard, the nine-story building, vacant since 1998 when the new Federal Courthouse opened, will be converted into 109 one-bedroom and 67 two-bedroom loft apartments. U.S. Bank worked with the Missouri Housing Development Corporation to purchase Low-Income Tax Credits in order for all of the units to be available at affordable rates, typically reserved for those who make 60 percent or below the area medium income. U.S. Bank also purchased State and Historic Tax Credits to bring a total of $24 million in equity to the deal.
Mark Jorgensen, U.S. Bank Kansas City market president, said that this project has been many years in the making, but thanks to the perseverance of community development officer Lynn Craghead, it has finally come to fruition. “This project is yet another example of our commitment to the Kansas City area in helping fund projects that move our economy forward. It complements our recent announcement of opening a new operations center on the Kansas side of the State Line in Overland Park, which will bring 1,100 new jobs to the area.”
Craghead said that the Courthouse Apartments are a perfect example of the type of public-private partnership that the tax credit program was designed for. “We are one of the largest investors of the tax credit program in the country because we believe in the economic and social benefits of this program.” She noted the 75-unit Hyde Park Apartments located at 336 W. 36th Street and the 66-unit Valentine Apartments at 3724 Broadway are two other examples USBCDC helped bring to light through the tax credit program, and added, “In many economically disadvantaged areas, it has breathed new life into our enduring and historically significant landmarks, awakened the possibilities of affordable urban living, and spurred construction jobs and full-time employment when additional businesses follow into the area.”
A product of the “New Deal” program, the Courthouse’s foundation was laid on October 20, 1938, and its quarters served as the setting for several landmark desegregation, anti-trust, and criminal cases during the mid-to late twentieth century. It also housed Harry S. Truman’s local senatorial offices. The building was ultimately vacated in 1998 when the new courthouse was built downtown.
The Alexander Company’s plans preserve the historic character of the building, while including updated features such as a underground parking, a fitness center, community room and rooftop patio. All units will have durable, energy star appliances and washer and dryers.
Matt Meeier, a partner at Alexander Company, said about 10,000 square feet of potential commercial space on the first floor will be available for lease at a future date for development, as well as space in the four former primary two-story courtrooms of the building, located on the fourth to sixth floors, which are largely intact.
The Alexander Company will serve as the developer, architect and property manger on the project. It has received many accolades for a similar historic rehab it completed in 2006 of the Professional Building, just three blocks south of the Courthouse, which is currently 100 percent occupied.
Barstow Construction, based in North Kansas City, will be tapped once again to work with Alexander Company, as they did on the 16-story rehab of the Professional Building. At least 75 jobs will be created during the rehab construction process.
About U.S. Bank and U.S. Bancorp Community Development Corporation (USBCDC)
With assets of over $6 billion, USBCDC finances community development and affordable housing projects through the use of New Markets Tax Credits, Historic Tax Credits, Low-Income Housing Tax Credits, and Investment Tax Credits in Renewable Energy. USBCDC is the largest New Markets Tax Credit investor in the country, investing billions of dollars nationwide in hundreds of transactions. These equity investments have provided much needed revitalization and new resources to communities throughout the country. USBCDC is a subsidiary of U.S. Bank and U.S. Bancorp (NYSE: USB). The company operates 3,002 banking offices and 5,170 ATMs in 25 states, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com
About the Alexander Company
Founded in 1981, The Alexander Company specializes in urban infill development, urban revitalization, and historic preservation. Involved in over $300 million of developments annually, The Alexander Company gives new life to historically significant buildings and once-vibrant urban neighborhoods.
Lisa Clark, 608-877-7517
Source: U.S. Bank