News Historic Tax Credit

NTCIC Closes on Historic Tax Credit Financing for the Converse Mill Revitalization

Written By: NTCIC

NTCIC is happy to announce the successful closing of an $8.5 million federal Historic Tax Credit (HTC) investment supporting the revitalization of the historic Clifton Mill No. 3 textile factory building in Converse, South Carolina. Once complete in 2022, it will become the Converse Mill Lofts, a 173-unit loft-style apartment complex overlooking the Pacolet River, well-known for its paddling and other recreational activities.

“This project took patience and dedication from the development team and its financing partners,” said NTCIC Director of Project Management Heather Buethe. “It was nearly ready to close in 2019, but then the original general contractor dropped out and it caused significant delay and extra cost.”

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Originally known as Clifton Mill No. 3, the building was constructed in 1896 on the bank of the Pacolet River as part of the Clifton Manufacturing Company, one of the largest textile mills in the United States. The mill complex was part of the major growth of Spartanburg County, South Carolina’s textile industry leading the area to become one of the nation’s largest textile centers. It remained a working textile mill for over 50 years before transitioning to warehouse use. Two of the three original buildings were demolished in the early 2000s.

The 247,000 square foot former textile mill will be transformed into Converse Mill Lofts and will create 173 loft-style apartments overlooking the Pacolet River, well-known for its paddling and other recreational activities. The development team has incorporated green requirements into the design to achieve National Green Building Standards (NGBS) Bronze level. The developers, Black Point Investments, have over 20 years of experience in real estate development and an affinity for historic renovation and multifamily properties.

“The development team was resilient and together we all got it done,” said Buethe. “NTCIC and its investment partners remained committed to the project despite the setbacks and worked closely with the development team and the HUD lender to help get to closing as quickly as possible when they were ready in 2021.”

The historic restoration of the Converse Mill was made possible, in part, by NTCIC through an equity investment in the $8.5 million in federal Historic Tax Credits (HTC) generated by the project. Additional financing included a South Carolina State Historic and Textile Mill Tax Credit supported by Monarch Private Capital, as well as a Housing and Urban Development (HUD) 221(d)(4) loan financed by the Greystone Funding Company.

Click here to learn more about NTCIC’s Historic Tax Credit syndication and investment services.