A non-profit Museum in Manhattan

The Museum purchased and renovated a tenement constructed around 1880. The building will house Museum activities as well as continue to house residential apartments until the leases expire and the Museum can expand into the entire space.

Issues

The client was seeking to finance the project with low-cost tax exempt bonds but was unsure if such financing would be cost effective for a mixed-use facility with residential, commercial and retail usage.

Solution

TFF was able to fund the project primarily with tax-exempt bonds, placing them directly with a large commercial bank. TFF also assisted the Museum in obtaining a capital grant from the City.

Benefits

Savings of approximately 2% in interest rate differential from a taxable financing.