HOUSTON, Sept. 9, 2013: Coats, Rose, Yale, Ryman and Lee, P.C. represented the developer in the recent closing of the acquisition and financing of the historic Texaco building, located at the corner of Rusk and San Jacinto, in downtown Houston. Provident Realty Advisors, a Dallas-based developer led by Leon Backes and partners Jay Hawes and Craig “Kip” Platt, will redevelop the structure located at 1111 Rusk into 309 high-end apartments, 8,000 square feet of retail space and a 550-space parking garage.
The developer’s legal support was provided by Coats Rose’s Affordable Housing and Community Revitalization Group – one of the largest teams of attorneys in the Southwest region dedicated to the representation of for-profit and non-profit developers in their pursuit of constructing, rehabilitating and preserving affordable housing and neighborhood revitalization projects. The head of the group, Barry J. Palmer, along with attorneys Andrea Steel and A. Kelly Longwell, worked diligently to close the complicated transaction in a timely manner.
This $95 million dollar project was made possible by combining various funding sources. The project is being financed through a construction loan from Bank of the Ozarks; a mezzanine loan from CMB Regional Centers under the EB-5 program; an equity investment by PNC Bank through the Federal Historic Tax Credit program; and a loan from the Houston Housing Finance Corporation collateralized by tax increment financing through the Downtown Redevelopment Authority’s Historic Preservation and Restoration program and the Downtown Living Program. The City of Houston’s increment reimbursement programs were the key catalyst in closing the financial gap needed to ensure this project would be financially feasible.
The historic Texaco building was originally built in 1915, and added onto in 1936 and 1958, but has been vacant since 1989. The federal historic tax credits and the City’s increment financing require that key historic architectural design elements are repaired and maintained. The redevelopment of this nationally registered Historic Place will provide economic benefits to downtown Houston by providing jobs, attracting new residents, and adding to recent revitalization efforts. An additional 200 units are in the concept stages, which would be built above the new garage. Texas’s newly legislated State Historic Tax Credit program is anticipated to provide additional sources of financing in the future. Construction on this exciting new project is expected to begin in a matter of weeks and the apartments are anticipated to be ready for occupancy within twenty months.
Coats Rose is a business transaction and litigation law firm based in Houston, Texas. For more than 25 years, Coats Rose attorneys have worked with clients in construction/surety law, real estate law, commercial litigation of all types, municipal law, public finance, affordable housing, insurance law, labor and employment law, and governmental relations. Coats Rose is comprised of more than 90 attorneys, with offices in Houston, Clear Lake, Dallas, Austin, San Antonio, and New Orleans.