Historic Real Estate Finance Training a Success – Skills, Language, and Confidence Gained
With the support and oversight of The 1772 Foundation, including funding for 20 scholarships, the National Trust for Historic Preservation and the National Development Council teamed up to offer a unique training opportunity for preservation professionals, advocates, and others working on historic real estate preservation projects. Part 1: Development Finance was held September 24-28 in Salem, Massachusetts. It offered a step-by-step look at the real estate development process and the numbers behind real estate projects including underwriting, appraisals, cash flow, depreciation, passive income/loss, syndication, tax credits, and more.
Both veteran practitioners and those new to the field were among the 40 attendees at this challenging course. Thanks to the intensity of the training, all participants reported gaining a new "fluency in the language of real estate development." They became better able to advise community leaders on potential projects and acquired confidence in their ability to work with developers to assess the feasibility of a project and to secure the financing necessary to make it a success. They all agreed that the training will make them not only better agents for historic real estate rehabilitation, but also more effective advocates for rehab projects.
Attendees have been quick to put into practice what they learned in the classroom. Jane Montanaro, Preservation Services Officer, Connecticut Trust for Historic Preservation, reported that she and her colleagues already are putting their newly acquired knowledge to use as they structure a deal to save a threatened property in a National Register district. Daniel MacKay of the Preservation League of New York State reported that upon returning home he read about a real estate project "from an entirely fresh and more informed perspective, understanding in far greater detail some of the key components of the deal covered in the press, but also knowing for the first time the calculations and formula and processes that have occurred behind the scenes and the news coverage to make this deal possible." He added, "I look forward to more comprehensive and facile discussions with our development contacts, as well as the ability to paint a more comprehensive and knowing picture of the art and science of these deals in my municipal advocacy and state and federal legislative work."
Part 2: Problem Solving and Deal Structuring will be held in Spring 2013. All Part 1 participants are eligible to participate. The 1772 Foundation again will provide scholarships.