Case Study

NMTC Case Study for Claussen Bakery

June 9, 2021

Project

The Claussen Bakery Project is the adaptive re-use 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 ultimately was 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 2nd floor, while 16,500 square feet of 1st 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: 1) the removal of an obsolete commercial building along a busy corridor, 2) the adaptive use of an historic building, 3) preservation of the area’s architectural heritage, and 4) the integration of high density new construction with high quality architecture.

Community Outcomes

The re-use 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 governmental 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, of which 126 are permanent and 117 are construction. To encourage the accessibility of jobs to LIC residents, the borrower is requiring 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 in the program. Throughout the 7-year NMTC compliance period, the project will provide favorable lease terms to its 1st floor tenants, including below market rents. These tenants are projected to be small and/or locally-owned businesses.

“The revitalization of this building will take it from a blighted eyesore that sat vacant for years, to a modern mixed-use development that will create construction jobs, direct and indirect employment, increased economic development to the immediate community, and the added benefit of facilitating new entrepreneurs investing in start-up businesses. It is clear to us that this project would not have existed without the New Market Tax Credit Program.”
– Steve Navarro, President, The Furman Co. Inc.

 

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

 

NMTC Case Study for Claussen Bakery