RICHMOND, Va. – December 17, 2020 – Berkadia today announced the financing secured for The Babcock Building, a gut-renovated garden style multifamily property located in Columbia, South Carolina. Senior Managing Director David Blake and Director Amy Gay of Berkadia’s Richmond, Virginia office together secured the $39 million construction loan on behalf of the borrower, Virginia-based Clachan Properties. The deal closed on December 9.
The HUD 221(d)(4) insured loan features a 3.47 percent interest rate with a 40-year construction and permanent non-recourse loan incorporating approximately $15 million in historic tax credits to restore the former Babcock.
“This deal was an amazing lesson from start to finish. Marrying state and federal historic tax credits with the HUD 221(d)(4) Substantial Rehabilitation program was an exciting and complicated process. Then, right before initial endorsement in September of this year, there was a terrible fire in the historic cupola of the building which gave us new opportunities to find creative solutions for unexpected problems. The HUD Southeast office was an important team member on this project and contributed so much to getting the construction started despite setbacks,” said Gay.
Located at 2150 Bull St., the renovated Babcock Building will feature 208 units, all unique in design because of the historic nature of the building, along with a pool, a dog park, a grilling garden, lounges and exercise facilities. Residents are afforded convenient access to the Bull Street Development, Segra Park and the University of South Carolina. Construction on this property is anticipated to be completed by late 2022.
“Closing on our HUD loan is a watershed moment for Babcock and Columbia,” said Hugh Shytle, President, Clachan Properties. “It is the culmination of three years of working with local, state and federal agencies, who were meticulous in ensuring that this grand building beloved by so many people could be brought back to life in a way that preserves its unique character. As the developer, we are fortunate to have great architects, engineers and contractors who worked long and hard for this day, and we had tremendous support from the city and county.”