Festus Gardens, a 160-unit rental-assisted community in suburban St. Louis, was developed in the early 1980s as a tax shelter for a group of approximately 20 St. Louis attorneys. By 2003, the property was deteriorating and the ownership group wished to sell, but required a structure that would address certain exit tax liabilities the partners would face.
Through careful tax planning involving an unusual donation/sale combination, and the progressive support of the Missouri Housing Development Commission, a structure agreeable to all participants was designed and consummated.
The imperative for careful planning continued throughout the renovation, both with regard to the relocation of residents in the 100% occupied property, as well as the comprehensive rehabilitation of the buildings and site.
By May 2005, the transformation of the property was dramatic—inside and out, it was an altogether new property. Occupancy at Festus Gardens has since never declined below 95%.