Hageman Capital was created in 2021 by Hageman Group to help real estate developers maximize their tax increment financing (TIF) incentives by buying and monetizing TIF Bonds.
We aim to “Create Shared Successes” for developers, municipalities providing the TIF incentives, and us, by investing in community development projects that generate value for years to come. With an understanding of both public financing incentives and real estate, Hageman Capital finds creative ways to structure and monetize TIF bonds that maximize value for everyone involved.
How Does Tax Increment Financing Work?
Tax increment financing is a public financing tool used by local governments to fund improvements and redevelopment projects within specific areas, or specific sites, known as TIF districts.
TIF districts aim to capture the incremental increase in property tax revenues that results from the new development or redevelopment of a designated area or site. These revenue increases can be used as an incentive to a developer and monetized to provide upfront financing.
How Does Hageman Capital Help Developers Monetize TIF Bonds?
Hageman Capital purchases developer-backed TIF bonds in a real estate development deal, providing capital for the project without contributing additional equity. In turn, by selling the TIF, developers can achieve a higher rate of return on their real estate projects.
Additionally, construction lenders are more inclined to loan on a deal where the TIF is sold, rather than being monetized through a construction loan. This allows more deals to close, especially in a higher interest rate environment.
Hageman Capital helps developers monetize TIF bonds at the beginning of each project. This is because we’ve found that municipalities are much more reluctant to support a developer’s project through their own credit. However, we’ve seen an uptick in developer-backed TIFs bonds, which require developers to support the debt service of the bonds, and ultimately find ways to monetize their TIF incentives with their own resources.
Hageman’s experience in real estate and TIF created an avenue to build Hageman Capital as a solution for developers who have had challenges in monetizing their TIF incentives.
Where Does Hageman Focus Its Investments?
Many of Hageman’s investments focus on assets built from the ground up. From our agricultural investments to our commercial real estate holdings, Hageman believes in “investing in tomorrow, from the ground up,” and has focused our investment strategies on agriculture, real estate, and entrepreneurship.
Our investments have spanned over multiple generations, with Gene Hageman buying his first 80 acres of farmland in 1952. The Hageman family then went on to create Remington Seeds in 1984, which reshaped the U.S. seed corn and seed soybean industry.
The success of Remington Seeds allowed for the creation of the Hageman Group, which allows us to create shared successes for our partners by investing in their projects. Our history of enriching the communities we invest in led the way to the creation of Hageman Capital in 2021, which helps solve problems for developers looking to invest in their own communities.
Partner with Us Today
Hageman Capital looks to create lasting relationships with groups that share our values. By investing in developers like Old Town Companies actively developing in their communities, Hageman can create shared successes with our partners.
Interested in partnering with Hageman Capital? Contact us today to learn more.
Contact Us