TRANSACTION OVERVIEW
Foss provided capital advisory in connection with the recapitalization of the Harrisonburg Innovation Hub, a 17,000-square-foot historic mixed-use redevelopment located in downtown Harrisonburg, Virginia, with a total project cost of approximately $7,000,000.
Originally constructed in 1935 as the Wetsel Seed Company building and later operated as a restaurant for over a decade, the property was repositioned into a collaborative innovation hub designed to serve local entrepreneurs and small businesses. The redeveloped asset features private offices, conference rooms, flexible workspaces, and rooftop amenities, blending modern functionality with preserved historic elements.
The assignment involved structuring and securing a capital solution to address construction cost overruns that had placed the project at risk of insolvency. An $817,000 C-PACE financing was ultimately arranged to fund energy efficiency improvements, including HVAC systems, lighting upgrades, and building infrastructure enhancements.
Working closely with the sponsor, the team evaluated capital alternatives, refined underwriting, and guided the transaction through execution under time-sensitive conditions. The successful recapitalization stabilized the project and enabled completion of the redevelopment into a multi-tenant innovation hub, integrating preserved architectural features such as vintage agricultural elements into a modern workspace environment.
KEY FEATURES
$817K C-PACE financing that resolved construction cost overruns
$7M total capitalization for a 17,000 SF historic adaptive reuse development
Transformation of a 1935 landmark building into a modern mixed-use innovation hub
Execution under time-sensitive conditions requiring creative capital structuring
Energy efficiency upgrades, including HVAC, lighting systems, and building infrastructure improvements
PROPERTY DETAILS
LOAN TYPE: C-PACE FINANCING, LOCAL BANK & HISTORIC TAX CREDIT
SQUARE FEET: 17,000
