Adaptive Reuse That Pencils: Historic Tax Credits Explained

Glenn: [00:00:00] Hey, everybody. It’s your hospitality friend Glenn here at the Hunter Conference. I wanted to say Hunter Hotel Investment Conference, but I think it’s now Hunter conference. Just. Isn’t that right? Just Hunter. All right. This is why I have to bring in my friend over here. Grey Raines  of Raines Co to solve these problems. But first, I want to thank my friends over at Actabl Actabl,they give you the power to profit. Please check them out at actabl.com. So last time I had an interaction with rains, we were talking about The Lantern. Really cool hotel giving back to the community. It’s open.

Grey: [00:00:26] It’s open for four weeks in mission focused. And it’s amazing watching these kids the impact to their families, the partnership with the University of South Carolina. We’re excited to have the first one open. We’re excited about the next one that’s under construction in Rock Hill, South Carolina, shortly followed by two more. So to have an independent, mission driven product that’s out the gates and running, it’s awesome.

Glenn: [00:00:49] That’s that’s really exciting because it’s something that’s really helping bring in the community and it’s really super special. Please check out our full length episode all on that. I don’t want to waste any more time on it now because we already did an hour on that. So but, but great. You guys got a lot of stuff going on, a lot of good standing. So how are you navigating a market that seems confusing and unnavigable.

Grey: [00:01:12] Hour by hour. Day by day. Yeah, right. So, you know, we’ve got such a fantastic team. We’re working together to solve those problems. We’re finding ways to develop. We’re finding ways to create new management relationships. And no, we’re just looking for that opportunity to find something to dig a little bit deeper. And we’re fortunate to do that. Pipeline is pretty robust.

Glenn: [00:01:32] So let’s break it down to new builds versus management. Management. How is that atmosphere for you? I feel probably like there’s a lot of churn going on. Generally speaking.

Grey: [00:01:42] There are we we’ve created some of that churn ourselves.

Glenn: [00:01:45] Of course, that means you get new clients.

Grey: [00:01:46] Absolutely. We’re getting new clients. We’ve exited some relationships because at the end of the day, we’re looking for partners that are aligned with our long term vision. So we look at things through the long term and we look at any of these small blips on the radar. It’s just that and that we’ll we’ll come out the gates on the other side stronger.

Glenn: [00:02:03] How are you getting development deals done? Because one of the things that I’ve been covering is how difficult it is right now in this environment to do that, which is why we’re seeing such a surge in conversions that the brands are focusing on. So you’ve got to you’ve got to do new properties.

Grey: [00:02:18] Absolutely. So we’re built. We’ve got new builds, but they’re in emerging markets or dynamic markets there. We’re working with the municipalities to create incentives. And then we’re also working deep into the historic adaptive reuse project, which.

Glenn: [00:02:30] Is going to have the lantern folds back into it.

Grey: [00:02:32] Absolutely. So the first lantern was that it was the old Columbia Fire Station in downtown Columbia. And so we’ve got three historic projects underway right now. So very.

Glenn: [00:02:42] Cool. When you hear historic project, you think impossible and expensive. So how do you negotiate your way to make it all pencil out on paper? And again, I say I’m a full believer in adaptive reuse. Properties are my favorites. Taking something historic and turning into something cool and modern. Love it.

Grey: [00:03:01] Well, we love being stewards of properties for the period of time that we have it. So if we can reset a property and create what could be the next 50 to 100 years of that property, we really take that as an honor. And so the historic ones, we did our first 1 in 2012. So we’ve beat our head against the walls working with the, with our government to create historic tax credits. And we just, we leverage those every time we can and find really unique, cool projects to do that the community really gets behind.

Glenn: [00:03:31] Yeah. How do you go about finding a really cool, unique project? Don’t give me your secret sauce, but just, you know, how do you like start to think about where you can do these things?

Grey: [00:03:39] Well, being community focused, community driven, we’re, we’re in our markets. So we we’ve got such a great team that finds a way of uncovering those relationships with brokers like Hunter turning or turning, find us and find opportunities.

Glenn: [00:03:53] Oh, that’s that’s really cool.

Grey: [00:03:54] Yeah. Absolutely.

Glenn: [00:03:55] Awesome. Anything else that you want to add?

Grey: [00:03:56] No. I’m excited to be here at Hunter and great to see you again.

Glenn: [00:03:59] How are you feeling about summer travel?

Grey: [00:04:01] I think it’s going to be last minute and that that booking window gets shorter and shorter by the day.

Glenn: [00:04:05] Yeah I think there’s going to definitely going to be last minute. I’m also thinking maybe a lot more drive to instead of flying this summer.

Grey: [00:04:11] Flying is a nightmare right now. We know that just by everyone being delayed this morning.

Glenn: [00:04:15] Well, yes. And I’m in a I’m in Atlanta. Well we’re all in Atlanta, so leaving here TSA is always delightful.

Grey: [00:04:22] So a lot of fun.

Glenn: [00:04:23] Yes. Hey. And Hey, thank them. I was when I was flying yesterday. I made sure I thanked every single one of those folks out there. Absolutely. Yeah. Hey, and thank you for watching. Please like, share, subscribe, all that kind of stuff. So for myself, Glenn, thanks for watching. We’ll see you next time.