Babcock Building renovations begin after key funding secured.

Renovations have begun at the historic Babcock Building in the BullStreet District after developer and building owner Clachan Properties secured federal funding to help finance the landmark's $55 million transformation into luxury apartments.

Richmond, Va.-based Clachan Properties closed on a long-term, low-interest U.S. Housing and Urban Development loan last week, according to a BullStreet news release, as well as on a tax credit equity with partners PNC Bank Tax Credit Solutions and Foss & Co. The HUD loan, facilitated by Berkadia Commercial Mortgage LLC, will finance $39 million of the project. The balance will be funded by tax credits and developer equity.

"Closing on our HUD loan is a watershed moment for Babcock and Columbia," Hugh Shytle, president of Clachan Properties, said in the release. "It is the culmination of three years of working with local, state and federal agencies, who were meticulous in ensuring that this grand building beloved by so many people could be brought back to life in a way that preserves its unique character. As the developer, we are fortunate to have great architects, engineers and contractors who worked long and hard for this day, and we had tremendous support from the city and county."

The iconic cupola of the Babcock Building, which once housed S.C. State Hospital patients, was destroyed in a September fire. It will be replicated as part of plans to transform the 254,000-square-foot structure, listed on the National Register of Historic Places, into 208 luxury apartments ranging from one to three bedrooms.

The residential complex will include a pool, dog park, grilling garden and exercise facilities. The first of five phases is expected to be ready for occupancy in early 2022, according to the release, with the entire project slated for completion in three years.

Project architect Walter Parks Architects of Richmond and contractor Rehab Builders Inc. of Winston-Salem, N.C., specialize in historic renovations.

Total project costs are expected to be $55 million, of which $39 million will be funded by the HUD Loan. The balance will be funded by tax credits and developer equity.

"This announcement is a tremendous Christmas gift to all of the Midlands," Columbia Mayor Steve Benjamin said in the release. "The ability to get the HUD loan was essential because of the complexities involved in renovating such a massive, deteriorating building to the highest standards."

The Babcock Building, designed in 1858 and...