Starks Building

Avison Young’s Capital Markets Team is pleased to present, on an exclusive basis, the opportunity to provide construction financing for the renovation and conversion of the historic Starks Building located in the Central Business District in downtown Louisville, KY at 455 South Fourth Street (the “Property”).  

Underhill Associates and Heritage Land & Development (the “Sponsors”) are seeking a loan in the amount of $52,600,000 which represents a 35% LTC based on the total costs of the project. Removing project costs that will be covered by grants and historic tax credits results in an actual LTC of 75%.

The fourteen-story Property is a historic Beaux-Arts office building which was built in stages beginning in 1913. Originally designed as a “U”-Shaped building, the open end was enclosed in 1927, and the central courtyard was covered with a skylight in 1982. The final “O”-shaped building provides a floor plate that is ideal for conversion to multifamily and hotel, and the enclosed atrium creates an excellent opportunity to activate the 2nd floor lobby for residents and visitors.

Upon completion of the conversion the Property will include 225 multifamily units, 156 hotel rooms and 4,058 NRSF of retail/commercial space.

The Property benefits from being listed on the National Register of Historic Places. Because of this status, the renovation of the Property has been able to secure significant financial assistance from both State, and Federal programs that significantly enhance the returns.