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Greenville New Markets' Propst

'Large bank financing has all but stopped for a lot of projects, so more and more of these projects are being supported by community or regional bank lenders.'

By Erika Morphy | Updated on September 19, 2008

It has become more and more difficult to underwrite real estate projects in the current credit markets — a state of affairs that has only intensified in the last few weeks for obvious reasons. This pull-back in credit has affected every part of the capital and finance markets, including New Markets Tax Credit financing – a complex tax-related discipline. Still, though, such deals are still getting done, as evidenced by the Greenville New Markets Opportunity LLC. Recently, the company announced some $17 million in below market financing for the Main at Broad project in South Carolina, developed by Windsor/Aughtry Co. This project will include 65,000-sf of office and retail space, a 250-space parking garage and a 135-room Courtyard by Marriott hotel. “The change in the financial markets has made underwriting on real estate transactions using these credits more difficult,” CEO Tammy Propst tells GlobeSt.com. “But it is still doable.”

GlobeSt.com: Using NMTC has always been complicated, correct?

Propst: Yes, that is certainly true. But the real problem today is that any kind of gap funding – and that is what a NMTC basically provides – has become very difficult in this environment.

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