When work on the 1401 Elm St. building renovation slowed down for whatever reason four months ago, developer Drever Capital Management said money for the mammoth project was not an issue. Added Noah Drever, son of Drever Capital owner Maxwell B. Drever: “We expect to get the deal fully funded … in the next month or 45 days.”
Tuesday, when Drever Capital was granted a one-year extension of its $50 million “TIF” grant agreement with downtown’s tax increment finance district at a TIF board meeting, the San Francisco-based developer disclosed exactly how it plans to finance work on the 52-story building, which it acquired out of bankruptcy in April of 2016 for $65 million.
Drever Capital listed the total project cost at just over $379 million—much higher than the $240 million figure reported repeatedly in the local press—and promised the board that its financing would be fully committed by August 31. Drever also revealed that it plans to monetize, or sell off, its $50 million TIF grant to Dallas-based Preston Hollow Capital for $30 million, and to raise $55 million via an innovative financing program called PACE. (Short for Property Assessed Clean Energy, PACE is a funding mechanism by which owners of commercial and industrial properties can access low-cost, long-term loans for water conservation and energy-efficiency improvements in their buildings.) In addition, Drever listed as a capital source $78.5 million in historic tax credits at closing via “US Bank, AIG, and/or Stonehenge,” and added that it had invested “over $134,872,602” in the project so far.Read More