Underwriting Analyses and Deal Structuring
We serve as an underwriting advisor to the MEDC, conducting independent financial analyses for projects seeking public assistance through Michigan's Transformational Brownfield Program
Michigan Economic Development Corporation (MEDC)
Real Estate Development Advisory, Public-Private Development Advisory
Michigan
Enacted in 2017, the Transformational Brownfield Program allows large-scale mixed-use projects to capture certain state taxes — including real estate, sales, income and withholding taxes — to support project feasibility. We were engaged under an ongoing contract to provide rigorous underwriting analyses for each project submitted to the program.
Work Completed
Evaluating developer financial capacity and ability to complete proposed projects
Analyzing the reasonableness of development costs and operating projections
Reviewing proposed financing sources and developer tax capture and exemption projections
Preparing independent financial analyses to evaluate project feasibility and developer return on cost and investment, with and without public assistance
Conducting sensitivity analyses to determine appropriate amounts and structures of public assistance
Providing deal structuring recommendations
Projects Underwritten
$2.2B mixed-use development in downtown Detroit, including 1.5M SF of office, 300,000 SF of retail, 250,000 SF of event/exhibition space, 900 residential units, and 200 hotel rooms
$1.5B mixed-use development in midtown Detroit, including 1.1M SF of office, 142,000 SF of retail, 700 residential units, and 470 hotel rooms
$701.1M mixed-use development in downtown Grand Rapids, comprising two towers with retail, office, 695 residential units, a soccer stadium, and an amphitheater
A fourth project currently under review in downtown Grand Rapids
Results
Our analyses were presented to the Michigan Strategic Fund board in 2018, 2023 and 2024. Each project is expected to facilitate redevelopment of key downtown sites and/or rehabilitation of historically significant buildings, with several components currently in predevelopment, under construction, or complete.
