Cohen-Esrey Capital Partners, LLC (CECP) is the capital formation unit for the Cohen-Esrey family of companies. In addition to sourcing debt and equity for apartment acquisitions and development, CECP makes a market in several different tax credit programs including:
- Section 47 federal historic tax credits
- State historic tax credits
- Selected state affordable housing tax credits
Cohen-Esrey has placed more than $700 million in tax credits for its own developments as well as for those of third-party developers.
Federal Historic Tax Credits
Section 47 of the Internal Revenue Code provides for a federal historic tax credit (HTC). The credit is based upon 20% of the eligible expenditures for physical improvements to designated historic structures. The federal HTC is a dollar-for-dollar reduction in federal income tax liability.
Introducing the Heartland Historic Preservation Fund VI, LLC
The Heartland Historic Preservation Fund VI (HHPF-VI) is a multi-property,
multi-investor fund sponsored by Cohen-Esrey Capital Partners, LLC. HHPF-VI makes
investments in partnerships that renovate historic structures throughout the U.S.
HHPF-VI is a "small deal" fund focusing on properties that generate HTC between $500,000
and $2 million.
HHPF-VI will invest in apartments, hotels, office buildings and other commercial structures. HHPF-VI receives a 99% ownership interest in the property level partnership. HHPF-VI receives 99% of the cash flow and the HTC. At the end of the fifth year, HHPF-VI intends to "put" its ownership interest back to the developer and exit the partnership.
HHPF-VI will receive an annual preferred return of 2% of invested capital payable quarterly. HHPF-VI will receive a "put" price of 7% of capital invested in the lower tier partnership at the end of the fifth year when the Fund exits the partnership. HHPF-VI asset management fees are very reasonable. HHPF-VI investment per credit dollar is very competitive.
- HHPF-VI does not require expensive legal reasonableness opinions.
- HHPF-VI does not require tax opinions.
- HHPF-VI does not require annual audits.
- HHPF-VI does not require construction inspection fees.
- HHPF-VI does not charge for financial projections.
State Historic Tax Credits
Many states offer historic tax credits that offset a variety of state tax liabilities. These credits are generally certificated but may be allocated in some instances.
Cohen-Esrey Capital Partners (CECP) makes a market in state HTC.
- We have a myriad of investors that use state tax credits.
- We handle the paperwork to transfer the credits.
- We pay very competitive prices for the credits.
- We can introduce you to an accommodation party if necessary.