Flaherty & Collins Properties partners with Twelfth Street Heritage and announces $35M Historic Preservation of Jazz Hill in Kansas City

KANSAS CITY, MO – Twelfth Street Heritage Development Corporation and Flaherty & Collins Properties have announced the groundbreaking of Jazz Hill, a 197-unit affordable housing community in Kansas City, Missouri. Jazz Hill will be a $35 million historic preservation of 11 buildings along The Paseo, a historic boulevard between Ninth and 14th streets in downtown Kansas City.

The groundbreaking will take place on Monday, January 23, 2023 at 2pm CST at 1000 Paseo Blvd. in Kansas City.

“When we got the opportunity to work on Jazz Hill with Flaherty & Collins Properties, it made sense to jump on board,” said Dwayne Williams, President and CEO of Twelfth Street Heritage. “We wanted to take care of the neighborhood and bring back what’s turning out to be an awesome boulevard.”

The large brick apartment buildings set to be renovated were built between 1896 and 1906. Eight of the 11 buildings are currently vacant.

“Jazz Hill represents what affordable housing and historic preservation can be and what it can do to help revitalize historic buildings,” said Drew Rosenbarger, Vice President of Development and for Flaherty & Collins Properties. “This was an extremely complex and layered deal, and we would not have been able to do it without our partnership with Dwayne and Twelfth Street Heritage. It all serves to provide quality affordable housing to Jazz Hill residents and preserve these truly remarkable historic buildings.”

Jazz Hill was financed with 4% Low Income Housing Tax Credits from MHDC, Federal and State Historic Tax Credits and tax-exempt bonds from the PIEA. Merchants Capital is the LIHTC investor, and Federal Historic Tax Credit investor, construction lender and provided Freddie Mac permanent financing. Monarch Capital is the State Historic Tax Credit investor. Kansas City provided $4.12 million in CCED funds.

Twelfth Street Heritage and Flaherty & Collins Properties became involved in the redevelopment of Jazz Hill in August 2020, when previous attempts to renovate the buildings did not move forward. The buildings will be completed and opened on a staggered basis over the next 16 months and each unit will receive over $100,000 in renovations, which include preserving the masonry, historic windows, porches and columns, while providing all new appliances, HVAC, roofs, flooring, bathrooms, cabinets, lighting, and elevators. The buildings were converted to public housing in 1975 and later renovated using the historic tax credit program in 2000.

“Seeing the financing close and this project become a reality is really what motivates us,” added Rosenbarger. “Our team has a lot of experience with these complex affordable projects that feature historic tax credits. It takes commitment and collaboration to see these through.”

Jazz Hill will include 14 studio, 147 one-bedroom and 36 two-bedroom units. The monthly rents are estimated at $600 for a studio, $725 for a one-bedroom and $825 for a two-bedroom.

Centric will serve as the general contractor for the project, with historic preservation provided by Rosin Preservation and Hive serves as the project architect. Jazz Hill should conclude renovations in mid-2024. Flaherty & Collins Properties has also been managing Jazz Hill since last summer and will continue in that role.