28 Broad Street
A Study in Using Historic Building Tax Credits
Our Client was interested in opening a fine dining restaurant in downtown Charleston. While searching for a suitable location in a tight market, we were able to secure an off market vacant office property that provided a unique opportunity for the Owner. The two adjacent buildings had been gutted by the current owner who was unable to complete the complex reconstruction of two historic buildings with multiple additions. In addition to analyzing all of the possible configurations and uses allowable under Charleston’s stringent zoning guidelines, we studied the available tax incentives. We were able to determine the properties could qualify for historic building tax incentives. We were also able to find the date the buildings were last occupied by prior owners. By delaying development by a few months, the properties were able to qualify for abandoned building tax credits. We were able to further maximize the available funds by splitting the project into multiple phases so each phase stood on its own to avoid the caps on the tax credits. Ultimately the project was developed into a first floor fine dining restaurant of approximately 7,000sf. Second floor office space consists of about 3,000sf. Six luxury apartments were completed with access to a new roof top deck. This 21,000sf re-development also includes 42 on-site parking spaces in an area of downtown where parking is at a premium. The project ultimately qualified for and the ownership received $3.8MM in state and federal tax credits.