Posted by JT-IN on July 15, 2002 at 10:02:22:
I cannot point you in the direction of the source that will give you the hard and fast IRR number you are looking for. However, what I want to mention is, historical property is heavily tax driven, in the form of “Tax Credits”. Investors seeking historical properties are usually buying a “Tax Break”, as much as the underlying investment.
So, when you find your source, be certain to evaluate the impact of the “Credits” that were given/taken against these projects. This will skew any numbers either into or out of making any sense, either by adding the tax benies or taking them away.
Traditionally, these projects haven’t done very well overall. I’m certain there are exceptions, but my personal knowledge of a few projects is akin to donating funds for a museum or such… you get some tax benies and a warm feeling. Maybe the develpoer makes out, but the underlying investors usually don’t.
Just the way that I view things…