ONB Community Equity LLC, a wholly-owned subsidiary of the $17.5 billion Old National Bank, Evansville, Ind., is the lead investor in the newly-formed Monarch Federal Historic Preservation Fund, which aims to restore and preserve historically significant properties in the Midwest and Southeast.
ONB will contribute to Monarch’s Fund I, the first of several planned funds, which will target properties that generate federal historic tax credits of $1 million to $5 million and that qualify for one-year credits under the 2017 Tax Cuts and Jobs Act. The affected investments will be properties located in the midwest and southeastern United States.
“We believe these creative investments have a tremendous impact on our communities, and ONB Community Equity LLC is proud to be the lead institutional investor in Fund I,” said Chris Wolking, senior executive vice president of Old National. The bank’s relationship with MPC will allow it to leverage its experience in tax credits and community development to support the rehabilitation of important historic buildings, Wolking added.
The fund will seek diversity among various real estate asset classes and plans to encompass multifamily, commercial, retail, mixed use, hospitality and special-purpose properties. The geographic footprint will comprise 13 states including Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, North Carolina, Ohio, South Carolina, Tennessee and Wisconsin.
ONB Community Equity LLC will provide origination, underwriting and monitoring services to the fund’s projects.
The launch of Fund I is “the result of a shared vision and commitment together with ONB Community Equity LLC to help transform under-occupied and vacant properties,” said Rick Chukas, the managing director of federal historic tax credits for MPC.