CHEVY CHASE, MD—Locally-based Federal Capital Partners has been steadily expanding beyond its Washington DC-based home into other points along the East Coast. Its latest foray has brought it to Charleston, SC where it acquired, along with joint venture partner Roi-Tan Investments, LLC, the city's historic Cigar Factory for $55 million. The duo plan to renovate the 244,000-square foot building, which is located on the Cooper River waterfront, into a mixed-use development.
The envisioned property will include creative work/office space, restaurants and event space and high-end retail. The building's Victorian-era commercial architecture will be restored as well.
The companies plan to start the redevelopment immediately and deliver the base building for first quarter 2015.
The total project costs for the redevelopment of the building, including historic restoration of the facade and windows, and build out of the tenant spaces will exceed $55 million. Both FCP and Roi-Tan are contributing equity capital to the project and FCP is also kicking in mezzanine debt financing.
The Cigar Factory is located at 701 East Bay St., sited on 4.5 acres. It was built in 1882 as a cotton mill, then sold in the early 1900s to American Tobacco Co., which manufactured the cigar brand, Roi-Tan, until the 1970's.
The property was later redeveloped into office space and used commercially under various owners. The redevelopment will take advantage of much of the work that has been done on the property in recent years. The project also qualifies for federal historic, state historic and textile mill tax credits.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
