Bond Backing
TIF bond backing: municipal vs developer backed
TIF applies the future increase in local property tax revenue to fund present-day development. Bonds may be supported by the issuing municipality — in some cases by a general obligation pledge — or by the developer alone, with no municipal obligation. Hageman Capital works with developer and municipality so that the bonds are issued directly to the firm at closing.
- Municipally backed — supported by the issuer's credit, in some cases by a general obligation pledge
- Developer-backed — reduced risk to municipal credit ratings, more projects incentivized
Expertise
Structure determines the proceeds available
Hageman Capital specializes in purchasing single-site TIF bonds. Structuring work determines how much of the incentive reaches the project as capital, and it is where the firm concentrates its effort.
- Outright purchase of TIF and incentive bonds at competitive valuations
- Flexible structuring across the capital stack, from senior to gap funding
- Decisive diligence — most valuations returned within days, funded in weeks
- Discretion and continuity from first call through closing
Developer perspectives
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, Old Town Companies
The Hageman team's expertise in commercial real estate, TIF, and public-private partnerships has been an extremely valuable resource for our team. Having Hageman Capital as a financing partner also provides us a great deal of credibility with our investors, construction lenders, and municipal partners. They are a great group of people who care about how their involvement in a project can help achieve extraordinary outcomes.
Shelby Bowen, President & Partner, Rebar Development
Hageman Capital was an integral partner of Buckingham for our Carmel Midtown AT&T project. They actively engaged in the process and identified potential pitfalls. Their contribution extended to generating creative solutions within the team and legal framework. As we look to the future, Hageman Capital has earned a top position on our list.
Christopher W. Myrvold, CFO & Head of Real Estate, Buckingham
Every Stage
A TIF holds value at every stage of construction
Hageman Capital purchases bonds at any stage of a project's life. Because we acquire bonds without municipal credit support, cities and towns can incentivize more projects without adding taxpayer risk, and developers receive upfront capital.
- Outright purchase of TIF and incentive bonds at competitive valuations
- Flexible structuring across the capital stack, from senior to gap funding
- Decisive diligence — most valuations returned within days, funded in weeks
- Discretion and continuity from first call through closing
Outright Sale
Selling the bond versus holding or borrowing against it
An outright sale delivers the incentive as capital at closing. Holding the bond, or financing against it, increases the equity the sponsor must contribute and reduces the project's return.