How GGG/AI Helped Preserve Financing, Historic Tax Credits, and Project Continuity Following a Major Fire Loss at the Babcock Building in Columbia, South Carolina

When a devastating fire struck the historic Babcock Building redevelopment project in Columbia, South Carolina, the future of the multi-million-dollar transformation was suddenly at risk. The loss threatened construction timelines, financing, historic tax credits, and anticipated rental income at a critical stage of redevelopment. Goodman-Gable-Gould/Adjusters International (GGG/AI) was retained within 48 hours to lead the complex builder’s risk claim, coordinate expert analysis, and help secure the funding necessary to keep the project moving forward. Through strategic claim preparation, financial impact analysis, and coordinated negotiations with insurers, GGG/AI helped preserve the project’s viability and position the redevelopment for long-term success.

Description

Clachan Properties was redeveloping a 250,000-square-foot abandoned medical campus into a 208-unit luxury multifamily community when a devastating fire damaged multiple structures during early demolition. The fire threatened the project’s financing, historic tax credits, HUD-related funding, and construction schedule.

Within 48 hours of the incident, Goodman-Gable-Gould/Adjusters International (GGG/AI) was retained to manage the builder’s risk claim and lead negotiations with the subscribing insurers. GGG/AI assembled a team of construction consultants, forensic accountants, and estimating experts to quantify the structural damage, evaluate financial impacts, and secure critical funding needed to keep the redevelopment project moving forward.

Through strategic claims preparation, time-element analysis, and coordinated negotiations, GGG/AI successfully helped preserve the project’s historic integrity, maintain financing eligibility, and secure a multi-million-dollar recovery for the insured.

Issues

Major fire damage to a historic pre-Civil War structure originally built in 1865
Extensive water damage caused by fire suppression efforts
Threatened loss of historic tax credits and HUD-related financing
Significant delays to project completion timelines
Escalating construction and subcontractor costs during the Covid-19 pandemic
Loss of anticipated stabilized rental income due to construction delays
Need for immediate liquidity to continue redevelopment operations
Complex reconstruction challenges involving historic restoration requirements

Solutions Applied

Retained and mobilized a multidisciplinary team of adjusters, forensic accountants, and construction experts within 48 hours
Documented and established pre-loss building conditions and historic architectural features
Quantified structural fire and water damage and developed remediation protocols
Measured project delay impacts and calculated covered time-element losses
Evaluated increased labor, material, and subcontractor costs resulting from the delay
Calculated loss of stabilized rental income and related soft costs
Secured early advance payments totaling $4 million to maintain project cash flow
Prepared and presented comprehensive claim documentation to the subscribing insurance market
Negotiated recovery for like-kind restoration to preserve the building’s historic integrity

Outcome

Multi-million-dollar recovery secured for the insured
Project financing and historic tax credit eligibility preserved
Hard costs and time-element losses fully indemnified
Development timeline successfully realigned to maintain project viability
Critical funding secured to allow construction and redevelopment to continue
Historic architectural elements, including the cupola and original plaster features, restored on a like-kind basis
Owners and developers were able to remain focused on reconstruction and ongoing development operations while GGG/AI managed the claim process