Navy Yard at Noisette

The Project

The Navy Yard at Noisette was operated as a base by the U.S. Navy until 1995 when it was closed. The Charleston Redevelpment Authority then took control of the property and sold it to the borrower to be developed into a sustainable mixed use urban center. Among the objectives of the development are to encourage the integration of uses and a range of densities to establish a live/work/play urban environment. To date, the Borrower has completed the construction of the ¾ mile City-owned waterfront park and the renovation of a group of historic building known as Storehouse Row. The district originally consisted of storehouses and office space for naval officers. Many of the buildings on Storehouse Row have already been rehabilitated and are occupied. The developer is now working to rehabilitate a number of the remaining buildings as well as planning the use of the remaining space.

Project Financing

Urban Development Fund has provided a $6.8 million interest-only loan to facilitate the redevelopment of Navy Yard at Noisette. The loan was used to pay off the previous financing which included burdensome provisions which were hampening the development of the property. UDF’s loan is for a 24 month term during which time the developer intends to attract additional partners to finish the redevelopment of the old Navy Yard. UDF’s loan includes numerous non-conventional features including lower than standard debt service coverage and below market interest rate. The subject development is supported by an approved $350 to $550 million 15 year TIF bond facility for horizontal infrastructure and cultural amenity development.

Community Impact

The property is located in a census tract with a 62.9% poverty rate. It is also located in an SBA Hubzone and a CDFI Hot Zone. The commercial property will attract numerous employers to the area, and the buildings that have been completed to date already include eight artists’ studios, several building and construction offices, the temporary campus of the American College of the Building Arts (ACBA), and a 5,000-square-foot event space. The development is rehabilitating an area left vacant since the mid 90’s and is expected to help revitalize the city of North Charleston. Additionally the property developers are sponsoring training for local, minority contractorfor development work on the property.