New Markets Tax Credit Expertise
WRC has unique expertise in the New Markets Tax Credits (NMTC) lending area, as the Lead Investment Partner for CT/KDF Community Development Partners (“CT/KDF”) since 2007. CT/KDF is a Community Development Entity (CDE) that is a joint venture between CT Realty Corporation and KDF Communities, both of Orange County, CA. In late 2006, CT/KDF received a $90 million NMTC Round 4 award from the CDFI Department of the US Treasury.
WRC is credited for the full deployment of this $90 million of capital into five initial investments – 2 ground-up construction transactions and 3 major rehabilitations. WRC has also, thus far, redeployed approximately $13 million of capital returned to the CDE, and is in the process of redeploying another $29 million. As a result, CT/KDF will have achieved a 2X benefit, recycling 50% of its NMTC benefit into a second investment transaction.
Due to this unique “niche” qualification, WRC is actively assisting both borrowers (QALICBs) and lenders (CDEs) in the successful execution of NMTC financings to generate the maximum achievable NMTC benefits to the transaction structure.