As part of the 2017 Tax Cuts and Jobs Act, Indiana established Opportunity Zones that incentivize investment in what were designated as economically distressed communities. Researching projects within those areas, Birge & Held identified Stageyard — a multifamily, mixed-use development envisioned to revitalize an underutilized strip mall to spur economic development. Based on in-depth research and analysis of the market, Birge & Held acquired the asset in the early stages of development. After revising the project scope and timeline and anticipating significant efficiencies through in-house property management and construction divisions, Birge & Held is developing Stageyard with privately syndicated equity.
Stageyard
Capitalizing on an Opportunity Zone
66 residential units
10,000+ square feet retail space
Ground-up construction
$20 million investment
Navigating Regulations
Birge & Held successfully turned around the previously stalled project on a site with environmental issues that also involved significant municipal regulatory and administrative requirements. Birge & Held successfully negotiated changes to the project size and scope, while bringing the projects partners together on a revised development schedule.
Maximizing Returns
We worked with investors to maximize the Opportunity Zone benefits for all parties in a project which was already projected to provide strong returns regardless of the additional tax incentives.
Creating Efficiencies
Working closely with our construction and property management divisions, Birge & Held created time and resource efficiencies.
Creating New Opportunities
Located half a mile from the Indiana University campus and within walking distance to major nightlife spots and a public transit center, Birge & Held realized the potential for Stageyard’s location. We positioned the 66 multifamily units to attract student and young professional tenants. Incorporating more than 10,000 square feet of first-level retail space in the building made the units more attractive to tenants, and helped revitalize the area. Fulfilling the state’s vision for Opportunity Zones strengthened the community while also delivering outsized returns for private equity investors.
