Market Overview

Monarch Private Capital Tax Equity Investment Helps to Create New Futures for Historic Landmark

Share:

Hotel Clermont Adds Over 100 New Jobs and a Projected $1 Million in
State and Local Tax Revenues

Monarch Private Capital (MPC), the most diversified investor in tax
credit projects, is pleased to announce the completion of the renovation
of the historic Hotel
Clermont
located in Atlanta, Georgia. The tax equity investment
generated tax credits that not only helped to preserve the cultural icon
but to help create new futures and vitality to the dynamic
Poncey-Highland neighborhood.

The famous landmark was initially an apartment complex built in 1924 and
converted to a hotel in 1939. It has become popular among the creative,
film, foreign and local professionals.

In 2009 the Hotel Clermont fell into foreclosure and sat unoccupied for
several years until BNA
Associates
had the vision to transform and acquire the property in
2012. The innovative plans received overwhelming approval from the
community. Everything was moving forward until they hit unforeseen
issues, such as replacing a city sewer line, that added millions to the
cost of the refurbishment.

"Historic buildings are tough. It's extremely difficult for old
structures in Georgia to be preserved when the costs to renovate are
significantly higher than rebuilding a completely new structure," said Robin
Delmer
, Co-CEO and Managing Director of Acquisitions for Monarch
Private Capital. "The federal and state historic tax credit is exactly
the kind of market-based incentive needed to attract creative developers
and leverage private investment in historic properties."

In 2015, the Georgia Assembly passed House
Bill 308
, raising the tax credit allowance for historic structures
from $300,000 to $5,000,000. That change is what gave the iconic Hotel
Clermont a hope for new life.

"Bringing back the Hotel Clermont would not have been financially
feasible without historic tax credits," said Philip Welker, Principal
for BNA Associates, "The cost to do what needed to be done would not
have made sense."

Restoring the Hotel Clermont not only saved it from demolition by
another developer but has provided other benefits that also protect the
distinctive character of the neighborhood. The boutique hotel has 94
rooms and appealing amenities are drawing crowds, such as French style
brasserie restaurant called Tiny Lou's and rooftop bar with one of the
best views of the city. The hotel now employs over 100 direct jobs, plus
those employed through ancillary services.

"For nearly ten years the vacant Hotel Clermont sat in a state of
disrepair and its only contribution to the community was in the form
property taxes," said Welker. "Now, based on our projected revenue from
the hotel rooms, bars and Tiny Lou's, we're looking at over one million
in state & local tax revenues per year and over a hundred jobs &
employment taxes."

"Hotel Clermont is convenient for business travellers, but many
Atlantans are staying there for a weekend getaway. The location is close
to so many entertainment options. If you don't have a reservation for
Tiny Lou's, expect a two-hour wait," said Delmer who has eaten there
several times. "The level of service provided by the hotel and
restaurant staff is memorable."

For more information on MPC's programs and services, please contact
Robin Delmer by emailing rdelmer@monarchprivate.com or
calling 404-596-8035.

About Monarch Private Capital

Monarch Private Capital positively impacts communities by investing in
tax credit supported industries. The company is a nationally recognized
tax equity investor providing innovative capital solutions for
affordable housing, historic rehabilitations, renewable energy, film and
other qualified projects. Monarch has long term relationships with
institutional and individual investors, developers, and lenders that
participate in these types of federal and state programs. Headquartered
in Atlanta, Monarch has offices and tax credit professionals located
throughout the U.S. Please visit monarchprivate.com to learn more.

View Comments and Join the Discussion!