Developer buys 3 downtown Tyler buildings for renovation
TYLER, Texas (KLTV) - New Orleans-based developer and tax-advantaged real estate company, NORF Companies (NORF), recently closed on a portfolio of redevelopment projects located in the heart of downtown Tyler. The portfolio consists of three projects having a total size of approximately 145,000 SQFT. The acquisition extends NORF’s footprint in the Tyler market, adding to their existing 104,696 SQFT project, 106 East Elm, the former Carlton Hotel, which closed last September and is currently in design and undergoing interior demolition and abatement.
The portfolio includes The Fair (121 S Broadway), The Lindsey (123 S Broadway), and The Wilcox (230 S Broadway), all located within a block of one another. NORF’s current plan is to fully renovate The Lindsey and Wilcox buildings into mixed-use/multi-family adding approximately 80 new rental units to the downtown Tyler market. In addition, NORF intends to remodel areas of the Fair, a Class B office building, and will continue to operate it as office space, while seeking a tenant for the ground floor retail space.
The projects will make use of Qualified Opportunity Zone Fund tax benefits, Federal and State Historic Tax Credits, and potentially New Markets Tax Credits.
The design team for the project will be Fitzpatrick Architects located in Tyler, along with Albert Architecture located in New Orleans.
NORF is bullish on the Tyler community’s compelling demographics and supportive local government. Tyler is one of the youngest and fastest-growing cities in Texas. It has an above-average per capita income, and the University of Texas at Tyler (UT) will be completing construction on its Medical School in 2023. It is anticipated that the UT Medical School will create over 21,000 new jobs in Tyler with an annual economic impact of $1.9 billion.
NORF’s Managing Director, Cullan Maumus, says, “Tyler is a great city in growth mode. The valuations we have been seeing in Tyler for quality buildings, some already in service, have only been one factor in our multiple acquisitions here, but certainly not the only driver. Spending time here, the vibe is infectious. City leaders proudly champion opportunity while entrepreneurs and professionals have bought into a shared vision. We are excited to participate in this undeniably special time in Tyler’s history. We are also excited to return these three buildings to their former vibrance and make them a part of Tyler’s future.”
The renovation of the Linsdey, Fair, and Wilcox is part of NORF’s national strategy to improve communities by redeveloping historic buildings and revitalizing blighted neighborhoods while generating compelling risk-adjusted returns for investors. These projects are part of the NORF 4 Opportunity Zone Fund. NORF focuses on tax-advantaged real estate investing including Historic Tax Credits and Qualified Opportunity Zones to enhance returns. Qualified Opportunity Zones are state-designated areas known to be underdeveloped and in need of economic expansion through redevelopment or job growth. The Qualified Opportunity Zone Fund program was created through the Tax Cuts and Jobs Act of 2017, which provides significant tax incentives for individuals to invest capital gains proceeds into these specially created Qualified Opportunity Zone Funds. NORF is the region’s leading developer of Qualified Opportunity Zone projects coupled with Historic Tax Credits. Visit us at www.NORFcompanies.com.
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