Marshall Trade School
Investment Portfolio
Marshall Trade School
Key Highlights:
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- Project Size: 135,000 sq. ft. mixed-use commercial development.
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- Investment: $25 million total, leveraging NMTC, HTC, and deferred development fees.
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- Strategic Fit: Integrating affordable multifamily housing and commercial development to create a high-growth ecosystem.
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- Partnerships: Public-private collaborations with local universities and entities.
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- Long-Term Vision: Capitalizing on underserved markets for high returns and sustainable job creation.
Public-Private Partnership and Tax Credit Leverage
We are investing approximately $25 million to develop a 135,000 square foot mixed-use commercial property in downtown Marshall, Texas, adjacent to our successful Marshall Lofts project. This commercial development addresses a critical need for community-centered retail, offering job creation and incentivizing local economic growth.
This project will be structured as a public-private partnership with several key local entities, including universities, leveraging both New Market Tax Credits (NMTC) and Historic Tax Credits (HTC). By tapping into these innovative financing mechanisms, we aim to reduce development costs and maximize returns while driving sustainable growth in the community.
Strategic Fit Within Our Broader Investment Approach
At the core of our strategy is the use of alternative debt and creative equity structures to fuel real change in historically underdeveloped areas, generating low-leverage opportunities with high-return potential. In a real estate market that has come under pressure, we are strategically developing properties on an opportunistic basis, positioning ourselves to capitalize on market inefficiencies.
A Symbiotic Development Approach: Enhancing Job Growth and Multifamily Viability
We believe that developing commercial properties in proximity to our affordable multifamily projects creates a symbiotic ecosystem, where job growth enhances the long-term viability of both investments. The Marshall submarket presents a compelling opportunity to evolve into a new multimillion-dollar sector for Versatile Global, supporting our ongoing strategy to deliver steady, long-term returns for our disciplined investors.
Market Timing and Strategic Partnerships
As real estate markets face rising demand and reduced inventory, small market developments offer unique opportunities outside of traditional large urban centers. This project capitalizes on pent-up demand, low barriers to entry, and the increasing attractiveness of non-traditional equity investments in smaller Texas markets. Our partnerships with state and local entities position us to capture one of the most promising new commercial real estate (CRE) investment classes.
Investment and Financing Structure
This acquisition is made possible through a joint venture, with sponsorship from Versatile Global for NMTC and HTC totaling $18 million, along with a $6 million equity investment from our flagship fund VGI I. Additionally, Versatile Developments will defer approximately $1 million in fees to further enhance the project’s financial structure and returns.
