Mansion on Main - New Albany, IN
History
The M Fine building located on Main Street in New Albany, Indiana is listed on the National Register of Historic Places, preserving history and enhancing the lives of the senior residents who now live in this building steeped in history of the textile industry of the region. The building was built by Morris Fine, a Russian emigrant, who, with his five sons relocated from New York City to southern Indiana in 1920. M Fine Shirt factory was known for producing the work shirt known as the Five Brothers. The building, designed by architect Joseph & Joseph of Louisville, KY typifies the early 20th century industrial architecture of its time. The L-shaped building was constructed of brick in a stretcher bond pattern and extensive walls of steel windows created the light necessary for early 20th century industrial sewing. Operable windows in the clerestories prevalent in the building assisted with lighting and ventilation. Mr. Fine’s multiple clothing plants in Southern Indiana, along with Louisville’s cotton manufacturing, created a recognized textile region for the nation. The company flourished through World War II but with the rise of foreign textiles and clothing, workforce layoffs began, and the plant closed in 2001. The building was used sporadically in the early 2000’s.
Redevelopment
Tommy Floyd and Brandon Denton, co-founders of Denton Floyd Real Estate Group, based in Louisville, KY, toured the former plant in early 2015 and immediately began to research area demographics for repurposing the building. It became evident, the county needed more retirement housing with a greater emphasis on social and community interaction. Denton Floyd worked to create an operating plan and community space taking advantage of the expansive clerestories in the centers of the building. Denton Floyd created a redevelopment plan to create a 108 unit assisted living community. The apartments are focused around central well-lit common areas, featuring dining, health and wellness facilities, a beauty salon, theatre and library area. Numerous private gathering rooms allow residents ample opportunities to host guests and families. Vitality Senior Services manages the vibrant community.
Camille Fife, Historic Coordinator for Denton Floyd said, “This adaptive use project has employed creativity and ingenuity to meet the highest standards for preservation.” The redevelopment plan respected the historic features of the former shirt factory and State Historic Preservation Office and National Parks Service approved the use of the Federal Historic Tax Credit as an incentive to the project.
The City of New Albany recognized the redevelopment potential of the repurposed facility by its proximity to the Mansion Row corridor and linkage to the downtown. The city redeveloped the corridor with a new boulevard, lights, landscaping and attractive signage. This commitment by the city allowed Denton Floyd to access the State of Indiana’s Industrial Recovery Tax Credit for the redevelopment of industrial plants out of use for more than 25 years and greater than 100,000 square feet. This credit of 25% of costs provided needed funding to the project.
Project Financing
Denton Floyd needed financial partners who understood the complicated structuring of ownership to properly convey the credits by way of ownership and leases. FHTC were not new to the development team of Denton Floyd, however bringing in multiple investors for the different credits combined with the unique delivery schedule of the credits, necessitated a financial partner accustomed to the nuances. Old National Bank’s Tax Credit Team entered as the historic investor and crafted a structure which allowed them to introduce the project to the state tax credit investor, Monarch Private Capital. Old National partnered with Kentucky Banker’s Association’s Hope of Kentucky and provided the lending necessary to complete the project.
Mitch Collins of Denton Floyd worked with Andy Ackermann of Mountjoy, Chilton, Medley to incorporate the needs of investors and lenders into an extensive project proforma. Bob Vice of Reed Weitkamp Schell & Vice represented Old National and KBA, while Amy Curry of Frost Brown Todd and Tracy Walker of Ackerson & Yann structured and documented the transaction for Denton Floyd.
Brandon Denton, Principal of Denton Floyd stated, “Denton Floyd knows the attention to detail required of historic renovation projects. The attention to detail this project needed for the financial architecture was significant and Denton Floyd could not have executed this without the experienced financial partners of Old National Bank, Kentucky Banker’s Association and Monarch Private Capital.”
The retirement center known as Mansion on Main opened in the Fall of 2018.
Transaction Highlights
Project Budget - $16 Million
Senior Living Units - 108
Federal Historic Tax Credit
Indiana Industrial Recovery Tax Credit
Tax Credit Team
Marty Richardson - Old National
SVP, Capital Markets
