back
January 11, 2019

Stonehenge tax credit investment preserves piece of Houston’s History

A high-profile Texas historic preservation project financed by Stonehenge Capital recently received recognition for the complexity of the overall redevelopment and financing process – along with the expertise required to see the project through.

A century-old historic landmark in downtown Houston, The Star served as Texaco’s headquarters in the late 1980's. The building later sat empty for over 15 years until it was bought by Provident Realty Advisors. Provident then converted the historic property into a modernized, mixed-use development, including a multifamily apartment community. Stonehenge Capital provided state tax credits to help finance the project.

Commercial real estate publication Bisnow described The Star’s transformation as a case study for success in an extremely complex process, noting: “Redevelopment of historic property presents a complicated combination of what needs to be done, what can be done while meeting tax credit guidelines, what developers want to get one and what it will cost.”

“If a building still has a lot of intact historic fabric it is important to understand what must be retained and preserved before any work begins,” Texas Historical Commission Director Chris Florance said in the article. The Star’s historically significant features included the first-floor entry, the original elevator lobby and the exterior facade.

To restore The Star, developers worked with the Texas Historical Commission to ensure that the preservation process met stringent historic tax credit requirements. Stonehenge’s investment and experience financing state tax credits helped Provident navigate the complicated, often years long approval process.

“Stonehenge’s commitment to preserving pieces of history continues to be one of the company’s main priorities,” said Whitney LaNasa of Stonehenge. “As an investor in the project, our investment experience and financing of state historic tax credits allowed the developers to successfully see the project through. We are thrilled that The Star will continue to be a vibrant historic landmark in downtown Houston.”