RICHMOND-A historic hotel here, the Hotel John Marshall, is being renovated into a mixed-use project–with the financing provided through HUD’s Section 220 Urban Renewal Program and Berkadia Commercial Mortgage. Essentially a historic tax credit financing, the twist is that it is based on a master-lease. This structure has only been used a handful of times–but appears to be more commonplace as both lenders, developers and HUD’s own field offices becomes comfortable with it.

Typically, with historic tax credit transactions the tax credit partner would own a majority of the entity in order to reap the benefits of having the tax credit, explains Berkadia senior vice president David Blake. A new application of this model is to lease all of the building to a master tenant, which gets the tax credit benefit instead, he tells So far, there have been only a handful of such deals structured.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.