The Capital Provider for TIF
Hageman Capital provides upfront capital to real estate development projects through the purchase of single-site, developer-backed, Tax Increment Financing (TIF) Bonds.
By purchasing TIF Bonds, we provide real value for real estate developers & our communities. We partner with the public and developers to purchase TIF bonds and maximize cash proceeds available for investment into the projects.
Our approach to TIF monetization is unlike other investors. By structuring TIF in a way that maximizes proceeds to the project, Hageman Capital returns more value to partners and the communities they serve.
Our expertise in real estate and TIF bond structuring combine to reduce risk and maximize proceeds for each real estate project. As a result, we ensure the value created stays in the project, and the community.
$150+ MillionTIF experience
$500+ Millionin Real Estate investments
$30+ MillionTIF Bonds acquired in 2021
Maximizing Community Investment
Hageman Capital’s team of experts aims to provide liquidity in this otherwise illiquid space and maximizes cash proceeds to real estate developments through our robust bond underwriting, legal structuring, and real estate investment experience.
Hageman Capital is a purchaser in single-site, developer-backed TIF bonds. We structure the bonds in a way that maximizes cash available to invest in the real estate project. As a result, our structure allows for better financing by decreasing the debt burden on the real estate development, enabling greater odds of success for developers, investors, and the community.
Real Estate Expertise
Unlike traditional, municipal-backed TIF bonds, single-site, developer-backed TIF bonds are not supported by municipal credit. Instead, these bonds are paid back by the incremental taxes generated from that specific development. Hageman Capital’s expertise in real estate creates more value for the TIF bond because of more informed underwriting of project performance.
Certainty of Execution
Real estate developments are complex. Hageman Capital creates value by bringing certainty. We lock-in the price of the TIF bond and provide funding at construction finance closing, removing a variable for developers, so they can focus on building the best product for their community.
Financed by Hageman Capital
Understanding the real estate asset is at the center of each TIF transaction. We first underwrite the real estate to determine the feasibility of the project and then determine the tax increment that can be generated from the real estate.
Hageman Capital assists the development team to reach a structure and terms that maximize net bond proceeds. Our structuring approach foregoes the need for certain covenants (reserve funds, excess coverage, and accelerated amortization) commonly seen in other TIF transactions, which will limit upfront proceeds.
Hageman Capital will work with the development team in reaching an appropriate price. Our interest rate guidance provides a level of certainty on final proceeds unlike other capital providers. We utilize our decades of experience in providing General Partner and Limited Partner equity; as a result, we believe proposal and pricing is an active process, and a dialogue between partners.
There are many stakeholders for the real estate development team to manage during the TIF bond transaction. Hageman Capital assists the developers in the bond closing process so the developer can focus on working with their other partners in achieving a financial close of the entire project.
Working with Hageman Capital on our Carmel, IN project was a great process. We were able to successfully structure a unique financing arrangement to monetize our real estate tax incentive bonds. Their team took a partnership approach and looked for a win-win solution for both sides. We look forward to our next deal together!
Matt Cremer, Managing Principal of Tegethoff Development
Hageman Capital has found a niche in the real estate capital market by providing developers liquidity in the TIF bond market. The Hageman team is a fantastic partner because they not only understand real estate development but also have expertise in solving unique challenges. It is comforting to know the Hageman Capital team is there to provide capital, but just as important, assist in strategic decision making that helps make our communities a better place to live.
Justin Moffett, Founder of Old Town Companies
We maximize value
while minimizing complexity.
Converts TIF bond public incentive to 100% equity at loan closing. Hageman Capital’s investment process maximizes proceeds compared to alternative financing mechanisms.
Cities and towns can incentivize more community investment without risking its own credit rating by guaranteeing bonds. Hageman Capital works with developers to maximize community investment by providing capital on behalf of the municipality.
Reduces construction lender’s risk by reducing loan sizes and increasing project equity at closing.
Real Estate Investors
Increases returns to equity for investors by requiring no capital to purchase or finance the TIF bond. The bond is sold at a “lower cost of capital” than typical equity returns, creating accretive value for the real estate investor.