Brad Toothaker and Ryan Rans, principals with Great Lakes Capital, spearheaded a new, mixed-use development in downtown Fort Wayne, Indiana. The project, known as Skyline Tower, contains 170,000 square feet over 12 stories. Floors 1 and 2 contain retail and commercial space, while floors 3 through 12 hold 123 residential apartments. With the promise of bringing new jobs downtown through the relocation of Bradley Company, and the addition of two restaurants, the City of Fort Wayne and the State of Indiana have supported the development with an assortment of funding sources.
Great Lakes Capital was the project’s developer, while the property is managed by a related entity, Bradley Company. Weigand Construction acted as general contractor, with architectural work provided by Design Collaborative.
Total development costs for the project were roughly $40 million. Old National Bank brought in a partner to co-invest in the state’s Community Revitalization Enhancement District “CReED” tax credit. A New Markets Tax Credit Allocation was provided by Wells Fargo. Old National, acting as lead in a partnership with two other banks, provided a $12 million leveraged loan and a direct loan of $5 million. The balance of the project funding was provided by grants from the Northeast Indiana Regional Development Authority Regional Cities initiative, bond proceeds from the Fort Wayne Redevelopment Authority, and a 10-year tax abatement.
Old National was able to leverage expertise from several areas within the company to finance the project. The following describes the bank’s involvement to serve Skyline’s tax credits, lending and capital markets needs.
Tax Credit Team – CReED Tax Credits
Old National led a partnership with a national tax credit syndicator to invest in the large Indiana CReED tax credits. The partnership allowed Old National to continue its role as the primary developer while bringing in additional capacity to absorb tax credits.
Fort Wayne Area Lending Team
Old National served as the primary lender on the transaction in partnership with two other banks. The group combined to provide a $12 million loan to be leveraged by the project’s New Markets Tax Credits. In addition, Old National provided a senior loan, letter of credit, and tax credit bridge loan for a combined total of $9 million.
Capital Markets SWAP
The timing of the project lent itself to interest rate swap agreements to fix the interest rate on the project loans. Old National provided a swap for the new markets leveraged loan, with an opportunity to enter into an agreement on the senior loan upon construction completion.
In addition to bringing jobs and economic development to Fort Wayne, the Skyline development has helped transform the city’s downtown into a live/work/play environment. By drawing on its team of experts in tax credits, lending and capital markets, Old National helped to make the developer’s vision a reality.
Project Budget - $39.7 Million
Residential Apartments - 123
Retail Space 1st Floor - 13,200 Sq ft.
Office Space 2nd Floor - 14,900 Sq ft.
Sources of Funding - 9
Tax Credit Team
Capital Markets TeamJim Schmidt - Old National
SVP, Capital Markets
Fort Wayne Lending TeamBob Hall - Old National
SVP, Corporate Lending
Allen Brouwer - Old National
SVP, Commercial Relationship Executive
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