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RALEIGH— Womble Bond Dickinson attorney Peter Duffley represented Durham-based developer, D3 Development, in connection with the renovation and adaptive reuse of a five-story, 309,410 square foot historic textile mill located in Haw River, North Carolina. The $44 million project is being financed with a combination of debt and equity. The building is located in an eligible opportunity zone and received $4.8 million of investment capital from investors seeking capital gain deferral through the opportunity zone program. Additional project financing includes a $23.8 million construction-permanent loan from HUD under its 221(d)(4) program, $10.2 million of federal and North Carolina historic tax credit equity, and a $4.8 million infrastructure loan from the Town of Haw River. When completed the project will include 175 market rate residential units and 7,000 square feet of commercial space.
The Granite Mill building is located on the banks of the Haw River in Alamance County and is listed on the national register of historic landmarks maintained by the National Park Service. The building was originally constructed in 1844 but was subsequently expanded five times, the last of which occurred in 1967. The mill was used by the Cone Mills Corporation to manufacture various textile products until it closed in 1997. D3 Development purchased the building in December 2017 and began predevelopment work in early 2018. The project is expected to be completed by December 31, 2019.
Peter Duffley is an attorney in Womble Bond Dickinson’s Raleigh office. His practice is focused on investors, lenders, developers and municipalities in all aspects of financing transactions utilizing low-income housing tax credits (LIHTCs), historic tax credits (HTCs), new markets tax credits (NMTCs), and other tax-advantaged programs.
